Faropoint’s footprint is growing in Bergen County with the addition of two fully leased industrial parks.

The Hoboken real estate investment firm‘s $144.5 million acquisition of the centers was announced this week. Comprising 10 buildings, the campuses total 770,064 square feet. According to Cushman & Wakefield, which arranged the sale, the transaction is one of the largest for a multi-tenant industrial property in Northern Bergen County’s history.

Allendale Shallow-Bay Industrial Park

Located at 1-3, 5-7 Pearl Court and 59 Route 17 in Allendale the 35.1-acre property includes seven industrial buildings with a cumulative 370,064 square feet. According to CushWake, 19 tenants occupied the property at the time of closing. The buildings are divisible and feature individual storefront, dedicated dock-high loading for each unit and 985 parking spaces.

Mahwah Industrial Center

Located at 16, 70-82, 91-97 McKee Drive in Mahwah, this three-building package totals 400,000 square feet situated on 33 acres. Seven tenants occupied this portfolio at closing, which offers 23 drive-ins, 16-foot clear heights and 1,463 parking spaces.

In addition to procuring the buyer, Cushman & Wakefield Vice Chairman Gary Gabriel, Executive Managing Director Kyle Schmidt, Managing Director Ryan Larkin and Associate Director Seth Zuidema represented the sellers, a joint venture between Montclair-based Camber Real Estate Partners and Advance Realty Investors of Bedminster.

In a statement, Schmidt described the package’s properties as complementary, offering various sizes and functionalities that can attract a wide variety of users. “The success of both portfolios is evidenced by record rental rates and leasing velocity year-to-date,” he said. “Camber Real Estate Partners has done an exceptional job managing and maintaining both portfolios since their initial acquisition in 2018 and 2019, respectively.”

According to Faropoint, the average tenure of tenants at both parks is more than a decade.

The move bolsters the buyers’ position in Bergen County’s industrial sector. In April, the firm added more than 113,000 square feet to its portfolio with the $28 million acquisition of two industrial properties in the Meadowlands.

“Over the last few years, Faropoint has proven the ability to execute on complex large-scale transactions which have added to the success of their Northern New Jersey portfolio,” Gabriel said. “Their strategy, discipline and data-driven approach was evidenced throughout this accelerated transaction process.”

“North Bergen County is one of the tightest industrial submarkets in the state and continues to demonstrate positive market rent growth, leasing velocity and compelling fundamentals that make it a vital area for investment,” Faropoint Director of Acquisitions in Greater New York Orry Michael said in a statement.

According to Cushman & Wakefield, at the close of the third quarter of this year, the overall average asking rental rate for the industrial sector was up year over year, to $17.22 per square foot.

“This historic high figure showcases the market’s resilience despite minimal quarterly fluctuations. Furthermore, the market’s strength becomes even more apparent when considering the annual growth rate, which surged 17.5% from the previous year,” Cushman & Wakefield found.

“Faropoint has and continues to recognize a compelling opportunity within the light industrial and shallow bay arena, distinguishing itself from the conventional larger box industrial developments prevalent in the NYC metro and Northern New Jersey (NNJ) industrial markets,” Michael continued. “These high-quality buildings offer much-needed flexibility, divisibility, and functionality desired by a broad spectrum of infill and last-mile users seen in the market today.”

Both centers offer direct access to highways including Routes 17, 208 and 202; Interstates 287 and 78; and the Garden State Parkway, as well as access to the New York/New Jersey ports. Along with that connectivity, Faropoint highlighted job and population growth in North Bergen County as ideal conditions for investment.

“Faropoint’s relationship-centric strategy, reliable funding and use of proprietary data and technology is what allows our investment teams to transact with accuracy and certainty when vetting and underwriting potential deals,” said Adir Levitas, CEO and founder of Faropoint. “The urban infill industrial product we specialize in has gained popularity in recent years due to the sector’s incredibly strong fundamentals, and we look forward to continuing to pursue similar opportunities in supply-constrained markets across the country in the years to come.”