CRG has sold two East Greenwich industrial buildings developed under its brand known as The Cubes, as depicted in this rendering, which prioritizes markets with access to major population centers, key logistics corridors and strong local workforces. — Courtesy: CRG
By Joshua Burd
A developer has reaped more than $107 million from its sale of two newly built industrial properties in southern New Jersey, in a deal arranged by brokers with JLL.
CRG, the real estate development and investment arm of Chicago-based Clayco, completed the transaction in East Greenwich less than a year after delivering the buildings at 100 Huff Lane and 191 Harmony Road. Watson Land Co. purchased the fully leased assets, both of which are within the East Greenwich Logistics Center about 20 miles southwest of Philadelphia.
The properties are 283,040 and 252,750 square feet, respectively.
“Each of these buildings was a major success for our clients and capital partners,” said Frank Petkunas, senior vice president, partner and Northeast industrial leader for CRG. “The facilities’ last-mile accessibility to Philadelphia and major freeways gave us a strategic position in the market. As major e-commerce users and logistics users continue to prioritize the southern New Jersey industrial markets, CRG will continue to establish its footprint here to meet those needs.”
JLL Senior Managing Director John Plower, Director Ryan Cottone and Analyst Zach Maguire led the capital markets team representing the sellers, working alongside Vice Chairman Paul Torosian, Managing Director Dean Torosian and Executive Managing Director Nate Demetsky. Watson Land, which is based in Carson, California, paid $107.74 million.
“We saw a tremendous amount of investor interest in this offering due to the high quality of construction, infill location and the in-place cash flow that both leases provide,” Plower said. “Southern New Jersey is a great distribution location, as it provides easy access locally and regionally along I-295 and the New Jersey Turnpike and is just across the river from Philadelphia’s massive population center.”
CRG developed the properties under The Cubes brand — which prioritizes markets with access to major population centers, key logistics corridors and strong local workforces — in a joint venture partnership with Pacific Coast Capital Partners LLC. Lamar Johnson Collaborative designed the buildings, while CRG parent company Clayco managed construction.
Both warehouses feature 36-foot clear ceiling heights and early suppression fast response fire sprinkler systems, according to a news release. The Cubes at Huff Lane features 43 loading doors, 187 parking spaces and 60 trailer stalls, while The Cubes at Harmony Road includes 38 loading doors, 208 parking spaces and 79 trailer stalls.
Both are fully leased, thanks in part to their location adjacent to Interstate 295, less than a half-mile from the New Jersey Turnpike and less than 20 miles from Interstate 95.
“This is the strongest industrial market of our lifetimes and today’s users require best-in-class, next generation facilities to keep pace with that demand,” said Shawn Clark, president of CRG. “That’s the standard we put into each of The Cubes, including these two in East Greenwich. We bring these buildings to life with the most vertically integrated development and investment platform in the country, and each successful sale helps us prove that.”
CRG also noted that, since 2018, it has broken ground on some 18 million square feet of projects nationwide under The Cubes brand, more than 10 million square feet of which has already been delivered.