Faropoint acquires Oakland industrial property for $9.6M

CBRE announces sale of fully leased, 44K-square-foot site

Jessica Perry//July 13, 2022

Faropoint acquires Oakland industrial property for $9.6M

CBRE announces sale of fully leased, 44K-square-foot site

Jessica Perry//July 13, 2022

CBRE announced it has arranged the $9.6 million acquisition of a fully leased 44,300-square-foot industrial property at 153 Bauer Drive in Oakland to Faropoint from Oakland Management.
153 Bauer Drive in Oakland. – CBRE

Earlier this week, CBRE released figures for New Jersey’s Northern and Central industrial markets that showed a record-low availability of 4.4% for the second quarter of the year while asking rents continued to climb. Faropoint’s purchase of a 44,300-square-foot industrial property in Oakland comes amid that persistent demand.

CBRE announced July 13 it arranged the $9.6 million acquisition of 153 Bauer Drive from Oakland Management by 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 crucial need for these types of properties, both existing and new construction,” 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 commodities such as this, with excellent proximity to both vehicular transportation veins and major ports, and they are looking to expand their portfolios for long-term stability and future growth.”

A closer look

“The sale of this property represents one of the numerous industrial transactions our team has completed in New Jersey in just the past few months, demonstrating again the industrial market’s dominance in New Jersey,” CBRE’s Jeremy Wernick said.

“Across the region, and particularly in today’s tumultuous market, industrial properties are highly coveted due to the continuing supply chain shortages and need for warehouse and distribution centers.”

Get more details from the firm’s Q2 2022 Industrial Figures here.

And according to Orry Michael, northeast director of acquisitions for Faropoint, its purchase of 153 Bauer Drive is no exception.

“This was a strategic acquisition made by our team to expand our presence in Northern New Jersey where we already have considerable holdings,” Michael said. “High barriers to entry continue to stifle Class A development in the Northwest Bergen submarket due to constraints for readily available land zoned for industrial use. The area is experiencing surging demand and significant rental rate growth as tenants search for high-quality, functional product. We anticipate market fundamentals will remain strong, despite some of the volatility seen in other segments of the market.”

The Bergen County property is located minutes from Interstate 287, offering direct access to major thoroughfares across New Jersey and New York, in addition to Port Newark/Elizabeth.

The purchase also comes in the wake of big sale from Faropoint: the offloading of a portfolio comprised of 109 institutional-quality, last-mile logistics buildings to a private seller for $481 million.

With it’s U.S. headquarters in Hoboken, Faropoint focuses on last-mile industrial properties in high population growth markets. According to its website, the company’s portfolio currently includes three properties in New Jersey, in addition to others throughout the U.S. In April, it purchased an industrial property measuring 140,000 square feet located in South Jersey.

Editor’s note: This post was updated at 9:06 a.m. EDT on July 14, 2022, to include a box with remarks from CBRE’s Jeremy Wernick.