Shallow bay industrial space continues to draw investors, as Faropoint expands its local portfolio with the acquisition of a two-building Morris County package.

JLL Capital Markets announced arranging the sale of the properties April 4. The facilities located at 200 and 300 Roundhill Drive in Rockaway Township total approximately 72,908 square feet.

JLL represented seller North Jersey Development Group. The firm also procured Hoboken-based tech-enabled industrial real estate investment manager Faropoint as the buyer.

Built in 1987 and 1990, the buildings sit on a combined 10.7 acres. JLL noted the site offers direct access to Interstate 80 at Exit 37. The deal comes as demand for shallow bay space outpaces available supply nationwide.

A new report from CBRE notes fundamentals in the space are closely tied to regional population growth, land constraints and local economic conditions. The firm identified Central and North Jersey as representing high rent/high vacancy markets. Figures on the former range between $10 per square foot to $12 per square foot, according to the report. Meanwhile, vacancy is between 5% and 6.5% for the areas, it said.

In Rockaway, Faropoint adds a fully leased portfolio. The property’s six tenants operate in manufacturing, light industrial and warehouse distribution. JLL also highlighted an average tenant tenure of 15 years at the properties.

200 and 300 Roundhill Drive both include 20-foot clear heights with separate loading. Functional layouts include units ranging from approximately 5,000 square feet to about 24,000 square feet.

Faropoint’s competitive advantage

JLL Managing Directors Nicholas Stefans and Jason Lundy along with Senior Analyst Luke Ceccoli led the team representing the seller. Stefan described the niche as “one of the most sought-after sub-asset classes due to the lack of availability, minimal development pipeline and increasing tenant demand.”

He noted that “Faropoint’s presence within the submarket gave the firm a competitive advantage in understanding market fundamentals and providing a seamless execution.”

In February, Faropoint said it secured the largest commitment to date for its Industrial Value Fund IV from APG Asset Management NV.

Launched last June with a $1 billion target, it also arrived with anchor commitments of $225 million to the fund and its sidecar from the Teacher Retirement System of Texas.

The firm partners did not release terms of APG’s investment, which helps to further diversify Fund IV’s institutional investor base. As of February, it has acquired or placed under contract 30 properties totaling 1.72 million square feet across nine markets, representing approximately $284 million in total investment value.