Cushman & Wakefield Brokers Trade of Newly Constructed, Fully Leased Property
PISCATAWAY, N.J., December 5, 2018 – A newly constructed industrial asset at 1 Turner Place in Piscataway traded this week in a sale orchestrated by commercial real estate services firm Cushman & Wakefield. The offering drew strong investor interest, reflecting sustained demand for Class A product in New Jersey’s Upper 287 submarket. Bentall Kennedy, on behalf of its institutional investor client, acquired the property from a partnership of LaSalle Investment Management and Greek Development.
Planned as a speculative development, the 452,000-square-foot warehouse/distribution property was fully leased by Cascades (TSX: CAS) mid-way through its construction. The tenant, a leader in the recovery and manufacture of green packaging and tissue products, subsequently invested approximately $80 million on building, infrastructure and manufacturing-related improvements. Cascades is North America’s sixth-largest producer of containerboard – an industry forecasted to grow 25 percent over the next six years in direct correlation to e-commerce expansion.
“The property offered Cascades a superior building designed by the highly regarded Greek Development, access to heavy rail, high-volume natural gas, and labor,” noted Cushman & Wakefield’s Gary Gabriel. The investment sales specialist headed the assignment with Andrew Merin, David Bernhaut, Kyle Schmidt and Mark Phillips of the firm’s New Jersey capital markets team, along with Adam Spies, and industrial leasing experts Jules Nissim and Marc Petrella.
“These attributes – along with the long-term commitment and significant investment by such a strong tenant in a high-growth industry – attracted multiple rounds of bidding from institutional investors,” added Schmidt, noting that the 287 Corridor has become a preferred location by investors and tenants alike. “Demand for ‘last-mile’ locations continues to spur demand for the region, as a result of its proximity to New Jersey’s roadway network, and access to the New York MSA.”
In fact, the 287 Corridor has emerged as one of New Jersey’s best-performing industrial submarkets. Cushman & Wakefield Research Services reports a vacancy rate of just 0.7 percent, 2.25 million square feet in net absorption since January 2017 and 69 percent rent growth since 2014.
Based in East Rutherford, Cushman & Wakefield’s New Jersey capital markets team specializes exclusively in office, industrial, multifamily, land and retail property trades throughout New Jersey, New York, and Fairfield County, Conn. The group has completed $27 billion worth of transactions since 2000, closing over $2.2 billion in sales in 2017.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
About Bentall Kennedy
Bentall Kennedy, a Sun Life Investment Management company, is a leading global real estate investment advisor and one of North America’s foremost providers of real estate services. Bentall Kennedy (which includes Bentall Kennedy (Canada) Limited Partnership, Bentall Kennedy (U.S.) Limited Partnership and the real estate and commercial mortgage investment groups of certain of their affiliates) serves the interests of more than 545 institutional clients with expertise in office, retail, industrial and multi-residential assets throughout Canada and the U.S. Bentall Kennedy’s Investment Management group has approximately $47 billion (CAD)/$37 billion (USD) of assets under management (as of September 30, 2018). We are one of the largest Real Estate Services providers in Canada, managing more than 60 million square feet on behalf of third-party and investment management clients (as of September 30, 2018). For more information, visit www.bentallkennedy.com.