PGIM Real Estate said Thursday it acquired phase I of Bridge Point 78 in Phillipsburg from  Bridge Development Partners for $275 million. The development, consisting of four newly constructed industrial warehouses totaling roughly 2.2 million square feet, was recently honored with NAIOP New Jersey’s “Industrial Deal of the Year” award for 2020.

Todd Goldberg, managing director, Ian Christ and Steven Oliveira, executive directors, and Kevin Interlicchio, associate vice president, of PGIM Real Estate’s Transactions team led the portfolio acquisition on the firm’s behalf. Brian Fiumara with CBRE National Partners represented BRIDGE in the transaction. Terms of the sale were not disclosed.

The portfolio is located just 2.5 miles north of Interstate 78, providing seamless access to the Northeast’s main trade corridors, FedEx’s Lehigh Valley distribution hub, the Port of NY/NJ, and Newark Liberty International Airport.

Frank Garcia, managing director and senior portfolio manager for PGIM Real Estate’s U.S. core strategy, noted, “The park was designed with the flexibility to cater to both large users and smaller tenants with a variety of space requirements, making it ideal for many logistics and e-commerce tenants seeking an optimal location at a discount to northern New Jersey rents.”

“Bridge Point 78 Phase I has been a successful project that has had a tremendous impact on the communities of both Phillipsburg and Lopatcong, and helped establish this rural area of New Jersey as a new hub for warehousing and distribution,” said Jeff Milanaik, partner of BRIDGE’s Northeast Region. “We already have an outstanding relationship with PGIM Real Estate, and are certain that this property is poised for continued success in their hands. In the meantime, we will continue our work transforming New Jersey’s infill and brownfield sites into state-of-the-art industrial facilities — creating developments that draw even more successful tenants that can fuel wider economic growth for the region.”

“Vacancies in the broader Lehigh Valley industrial market have trended to historically low levels and rents are forecasted to grow in line with the national average,” said Cathy Marcus, global chief operating officer and head of U.S. equity at PGIM Real Estate. “The continued expansion of e-commerce across the U.S. and the growing port traffic regionally will further strengthen industrial demand and result in additional upside for this portfolio.”

PGIM Real Estate now owns approximately 120 million square feet of industrial space globally and 58 million square feet in the U.S. Through these three most recent acquisitions, the firm has added 49 best-in-class industrial properties totaling 12.3 million square feet to its U.S. core real estate fund, further strengthening its asset allocation position.