With its tenant set to depart, a last-mile warehouse location will be available in Boonton following its sale to Boston-based vertically integrated real estate firm Marcus Partners.
Binswanger announced Nov. 13 it arranged the sale of the 111,548-square-foot industrial facility located at 100 Fulton Road, which Marcus Partners plans to reposition as a modern distribution facility.
The Philadelphia-based commercial real estate firm acted on behalf of the seller, office furniture design company Dauphin. Binswanger also negotiated a short-term leaseback to allow for the tenant’s transition while Marcus Partners gets to work on updates. Financial terms of the deal were not disclosed.
Binswanger said it was able to run an expedited marketing process that generated significant interest from both users and investors.
It’s no surprise Dauphin’s impending exit from the property drew attention. Situated on more than 11 acres, the site is located directly off of Interstate 287 and approximately 30 miles from New York, offering excellent distribution opportunities locally and beyond.
Morris County boasts access to 56 million residents within a five-hour drive, according to the Morris County Economic Development Corp. And as of the third quarter of this year, the accessible area also posted some of the lowest average asking rents in New Jersey when it comes to industrial space ($11.98 per square foot, according to NAI James E. Hanson’s figures), with demand unrelenting as seen in its 2.5% vacancy rate.
“This transaction is further evidence that Northern New Jersey, one of the strongest markets in the country, continues to bolster high demand for industrial facilities with high-quality distribution capabilities,” said Binswanger Senior Vice President, Mike Torsiello, who brokered the deal along with his partner, Vice President Nick Biedron. “The client decided to take advantage of the property’s increase in value while it repositions its operations within the U.S.”
The property also includes 2 acres of concrete pad designated for exterior storage or potential expansion, according to Binswanger, as well as 29-foot to 35-foot clear ceilings, heavy power and plenty of space for truck storage.
In its announcement of the purchase, Marcus Partners – which has a New Jersey office in Morristown – described the opportunity as “compelling” due to that ceiling height and industrial outdoor storage.
The company said it was represented by Totowa-based Lerman Sanders Realty.
“This asset has several compelling characteristics that are not commonly seen in this market. The combination of size, ceiling height, and outdoor storage area are major differentiators for 100 Fulton. We are excited to add this asset to our growing portfolio in Northern New Jersey and believe 100 Fulton will be a preferred option for prospective tenants,” said Marcus Partners Senior Vice President Todd Minerley in a statement.
Built in the 1970s, the single-tenant building recently received updates to its approximately 7,500 square feet of office space, Marcus Partners said.
Morris County has recorded significant industrial activity lately. A speculative project from Cervenka Development Partners and Monocle Group proposed at the end of October would bring nearly 120,000 square feet of Class A space to a property with nearly immediate access to Interstate 80. Then, at the start of November, JLL Capital Markets announced “the largest industrial sale of the year” — the $217.5 million sale of a 1.2 million-square-foot portfolio located in East Hanover.