City Edge Sells NJ Industrial Portfolio for $218M

City Edge Sells NJ Industrial Portfolio for $218M


Aerial view of the East Hanover industrial portfolio

The East Hanover industrial portfolio modified palms in a 1031 trade. Picture courtesy of JLL Capital Markets

In New Jersey’s largest industrial sale of the yr, retail REIT City Edge Properties has bought a 1.2 million-square-foot, seven-building portfolio in East Hanover, N.J., for $217.5 million. The customer was an funding fund managed by Morgan Stanley Actual Property Investing along with Rock Actual Propertyits operator and supervisor. JLL Capital Markets brokered the transaction.

The deal was structured as a part of a 1031 trade transaction used to partially fund the $309 million acquisition of two Boston-area purchasing facilities totaling almost 1.4 million sq. toes—Gateway Heart in Everett, Mass., and Consumers World in Framingham, Mass.—from SITE Facilities. City Edge funded the remaining stability of the acquisition with its line of credit score.

READ ALSO: What’s Forward for Industrial?

The sale of the economic portfolio, positioned in Morris County, is a part of the corporate’s technique of buying high-quality retail actual property with future development potential. The REIT, which owns and operates 76 properties totaling 17.2 million sq. toes, is actively negotiating the disposition of greater than $100 million of non-core property.

A Northern New Jersey industrial portfolio

Positioned at 901, 903-906, 601 Murray Highway and 151 Ridgedale Ave., the sunshine industrial portfolio is unfold throughout seven buildings that had been absolutely leased on the time of sale by a complete of 13 tenants. Key options embody a mean clear peak of 21 toes and 945 complete parking areas.

The properties are within the excessive barrier-to-entry and supply-constrained market of Northern New Jersey. One of many properties, 151 Ridgedale Ave., was acquired in October 2021. The 187,013-square-foot Paper Mart warehouse and distribution heart had initially been owned by City Edge’s predecessor, Vornado Realty Belief. Vornado spun off City Edge right into a separate firm in January 2015. Vornado had bought the 9.17-acre property to Paper Mart in 1978. Buying the location again from Paper Mart in 2021 gave City Edge possession of all of the industrial property on the block.

The Morris County submarket is the fourth largest submarket in Northern New Jersey, representing greater than 33.4 million sq. toes of commercial area.

Organized by JLL

JLL Capital Markets organized the deal, representing the vendor and procuring the client. The Funding Gross sales and Advisory staff was led by Jose Cruz, Marc Duval, Jordan Avanzato, Nick Stefans, Jason Lundy and Austin Pierce.

In one other latest transaction, three JLL brokers secured a $869 million financing bundle for an 11.4 million-square-foot industrial portfolio. The absolutely leased properties have a mean completion date of 2020.

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