Earlier this week, CBRE released numbers for the northern and central New Jersey industrial markets that showed record availability of 4.4% for the second quarter of the year as asking rents continued to rise. . Faropoint’s purchase of a 44,300 square foot industrial property in Oakland comes amid this persistent demand.
CBRE announced on July 13 that it had arranged the $9.6 million acquisition of 153 Bauer Drive from Oakland Management by a real estate investment firm. Faropoint.
The CBRE Tri-State Investment Properties team of Elli Klapper, Jeremy Wernick, Mark Silverman and Charles Berger, along with CBRE’s Mark Trevisan, Kevin Dudley, Nick Klacik and Chad Hillyer, represented Faropoint in the negotiations.
The buyer, CBRE said, intends to hold the site as an industrial investment property.
“More than ever, investors recognize the critical need for these types of properties, whether existing or new,” Klapper said in a statement. “There has been a paradigm shift in the market as investors and developers see the long-term value of industrial products like this, with excellent proximity to vehicle transport veins and major ports, and they are looking to expand their long-term portfolios. term stability and future growth.
A closer see
“The sale of this property represents one of many industrial transactions our team has completed in New Jersey over the past few months, again demonstrating New Jersey’s industrial market dominance,” said CBRE’s Jeremy Wernick.
“Across the region, and especially in today’s tumultuous market, industrial properties are in high demand due to ongoing supply chain shortages and the need for warehouses and distribution centers.”
Get more details on the company’s second quarter 2022 industry numbers here.
And according to Orry Michael, Northeast Director of Acquisitions for Faropoint, his purchase of 153 Bauer Drive was no exception.
“This was a strategic acquisition made by our team to expand our presence in northern New Jersey, where we already hold significant holdings,” Michael said. “High barriers to entry continue to stifle Class A development in Bergen’s North West submarket due to constraints on readily available land zoned for industrial use. The region is experiencing growing demand and significant growth in rental rates as tenants seek a functional, high quality product. We expect market fundamentals to remain strong, despite some of the volatility seen in other market segments. »
The Bergen County property is located minutes from Interstate 287, providing direct access to major New Jersey and New York thoroughfares, in addition to Port Newark/Elizabeth.
The purchase also comes on the heels of a major Faropoint sale: the transfer of a portfolio of 109 institutional-grade last-mile logistics buildings to a private seller for $481 million.
With its US headquarters in Hoboken, Faropoint focuses on last-mile industrial properties in markets with high population growth. According to its website, the company’s portfolio currently includes three properties in New Jersey, in addition to others across the United States. In April, she purchased a 140,000 square foot industrial property in South Jersey.
Editor’s Note: This post was updated at 9:06 a.m. EDT July 14, 2022, to include a sidebar with remarks from CBRE’s Jeremy Wernick.