The sale of Sanofi’s North American Headquarters in Bridgwater was the biggest deal of last month.
Sanofi’s North American headquarters was sold to California investment firm AVG Buyers for $260.65 million, CBRE announced Jan. 24. The transaction was New Jersey’s largest deal announced last month.
CBRE procured the buyer and represented seller American Finance Trust.
The building at 55 Corporate Drive in Bridgewater totals approximately 675,000 square feet, and the transaction is the biggest single tenant deal in the state since 2016, according to CBRE. Sanofi has a lease in place through Dec. 31, 2032.
“We pride ourselves on executing not only the largest and most complex transactions in the market, but more importantly, providing our clients with thoughtful advice on timing and execution,” said CBRE Vice Chairman Jeffrey Dunne. “This closing helps American Finance Trust realize the goal of rebalancing its portfolio as this was the largest single owned asset.”
CBRE Executive Vice President Jeremy Neuer added, “The quality of the building, the amenities, and the workplace environment along with the creditworthiness of Sanofi attracted a deep buyer pool. Capital clearly understands that trophy buildings will continue to be in demand in our market.”
85 Main St. in Spotswood.
SPOTSWOOD MANUFACTURING SITE
A vacant, 58-acre manufacturing site in Spotswood sold for $40.25 million, NAI Fennelly announced Jan. 25. The firm’s Jerry Fennelly and Patrick Dintrone represented the unnamed seller of the property at 85 Main St. in the sale to a private institutional buyer.
According to NAI Fennelly, the seller operated the facility from 1941 until 2020, when it consolidated manufacturing at other locations, enlisting the firm to market the site for sale.
“Selling manufacturing assets can be difficult for large international companies. Far too often, a lack of local market knowledge and experience can make the sales process lengthy, expensive and frustrating,” Fennelly, the firm’s president, said in a statement. “[W]orking with NAI Fennelly allows international and national companies the opportunity to tap into our unparalleled experience in the central New Jersey market and enjoy the full end-to-end sales experience focused on efficiently securing the highest market value for any commercial asset.”
The property is less than 1 mile from Route 18, 5 miles from Exit 9 on the New Jersey Turnpike and offers dual freight line rail connectivity, making it an ideal candidate for redevelopment into an institutional quality warehouse and manufacturing facility, NAI Fennelly said.
The firm approached the marketing of the facility with that potential as a highlight, amid strong demand for redevelopment sites along the turnpike, resulting in 4o showings, 20 offers and 10 financial statements in the first 30 days, it said.
The 24 Jones community in Newark.
NEWARK APARTMENT COMMUNITY
A Class-A apartment complex in Newark’s University Heights neighborhood sold for $36.5 million. CBRE announced the sale of 24 Jones on Jan. 5.
A team of Jeffrey Dunne, Jeremy Neuer, Steve Bardsley, Stuart MacKenzie, Eric Apfel and Travis Langer represented Tucker Development, the seller, and also procured the buyer, RJ Block Properties.
Built in 2016, and located at 24 Jones St. in Newark, the 152-unit community offers amenities including a fitness center; resident lounge; outdoor patio with grilling areas; covered, secure access parking and a 24-hour concierge, CBRE said.
Apartments are finished with vinyl plank flooring, granite countertops and stainless-steel appliances.
“24 Jones is an exceptional multifamily asset in a growing area of Newark,” Dunne said in a statement.
“The property benefits from its proximity to Rutgers University Hospital and Medical School, while also sitting adjacent to ShopRite and other retailers,” he continued. “This should continue to drive demand which bodes well for RJ Block’s investment.”
INDUSTRIAL REDEVELOPMENT IN SOMERSET
An undisclosed buyer purchased 15 acres of industrial development land in Somerset for $30.75 million in a deal arranged by CBRE, the firm announced Jan. 6.
According to an announcement, the new owner plans to reposition 200 Cottontail Lane’s existing, 209,000-square-foot office building, and to build a new warehouse-distribution center at the property.
“Our client’s focus on investing in logistics assets in key development markets across the U.S. has helped them amass a development pipeline of more than $5.6 billion and over 3,000 properties,” CBRE’s Mark Silverman said of the buyer.
Rounding out the CBRE Investment Properties team that worked with Silverman on behalf of the buyer in the transaction are Elli Klapper, Charles Berger and Jeremy Wernick, in addition to Kevin Dudley of the firm’s Industrial & Logistics Group.
In recent years, the property had seen a spike in vacancies – exacerbated by the pandemic. Following the township’s rezoning of its Corporate Business District to allow for industrial uses, 200 Conttontail Lane was primed as a candidate for redevelopment, CBRE said.
“This is one of the numerous off-market deals we have been involved in in the Somerset area in the past few years,” Silverman added. “There continues to be significant interest in industrial repositioning due to the supply chain pipeline issues being seen worldwide and lack of developable industrial land in New Jersey. We had to move quickly to secure this property for our client, who is excited to develop a high-quality warehouse facility in an extremely tight industrial market.”
EWING OFFICE/WAREHOUSE BUILDING
Constructed as a build-to-suit for Educational Testing Services in 1995, an office-warehouse building in Ewing sold for $18.75 million, CBRE said Jan. 4.
Of its approximately 310,000 square feet, 165,000 square feet is office space while 145,000 square feet is warehouse and print space at 225 Phillips Blvd.
ETS will lease back the building for a short period of time, CBRE said, allowing the buyer to begin marketing for the space ahead of its availability.
Dunne, Neuer, Bardsley, David Gavin, Rich Gatto, Fahri Ozturk, Travis Langer and Zach McHale of CBRE’s Institutional Properties group, in partnership with Matthew Saker and Thomas Monaghan, represented ETS in the sale. The team also procured the unnamed buyer.
Dunne described the building – and its mix of office and warehouse space – as unique in the market. “ETS maintained the building in an immaculate state and the quality of both the initial construction and the additional capital invested recently helped drive interest during the marketing process,” he said in a statement.
According to Neuer, the common areas at 225 Phillips Blvd. were recently upgraded and a full building generator was added.
MAHWAH INDUSTRIAL REDEVELOPMENT SITE
Marking the first acquisition of Russo Development and PGIM‘s partnership, CBRE said Jan. 31 that the pair purchased a Bergen County site that will see the construction of a new, Class-A industrial building.
Dunne, Neuer, Bardsley, Gavin, Gatto, Ozturk, Langer and McHale of the Institutional Properties group worked with the firm’s Saker and Patrick Cavanagh to represent seller TD Bank in the $17.5 million sale of 1000 MacArthur Blvd. in Mahwah.
The team also secured the buyer, which CBRE said has approvals to build a 200,000-square-foot industrial facility at the property.
“Russo separated themselves early on in this process and worked through a very challenging approval process,” Dunne said in a statement. “We are delighted to be a part of their first project with PGIM as we expect this will be the first of many deals together.”
According to the commercial real estate services and investment firm, demolition of the site’s current 60,000-square-foot building is expected imminently, with construction commencing thereafter.
“We continue to see antiquated office buildings be redeveloped for higher and better uses and 1000 MacArthur will become Russo’s newest Class A industrial development,” Neuer said. “We are confident this will be another in a long line of successful developments for them.”
380 Communipaw Ave. in Jersey City.
JERSEY CITY MULTIFAMILY BUILDING
A luxury apartment building in the Bergen-Lafayette section of Jersey City, an Opportunity Zone, sold for $16 million.
Grid Real Estate represented the buyer, Golden Glades Capital Management, in the transaction. The Jersey City-based commercial brokerage and advisory firm announced the transaction on Jan. 11.
The New York-based firm’s latest acquisition at 380 Communipaw Ave. has 40 units for a collective 30,440 square feet of residential living space, in addition to 31,000 square feet of retail space. The sale, works out to $400,000 per unit.
Grid’s Bobby Antonicello and Gregory Edgell represented the buyer.
The building was developed by Hoboken-based Six Boro Holdings, and will feature a mix of studios, one- and two-bedroom units with an outdoor common area and rooftop space.
“Bergen-Lafayette development has been booming on the Light Rail stop for years though there has been no street level activation, retail or restaurants to amenitize the density,” Edgell said.
According to Grid, 380 Communipaw Ave. is the first of its size to be developed on the other side of Bergen-Lafayette.
“380 Communipaw Ave. is in the heart of the retail corridor surrounded by new shops, famed restaurants and the city’s largest park. This area offers a more walkable neighborhood—the buyer is going to do very well here as the market continues to grow,” Edgell added.
Grid said the deal closed pre-Temporary Certificate of Occupancy.
Sound Point Commercial Real Estate Finance, a unit of Sound Point Capital Management LP, provided a two-year, floating-rate acquisition bridge loan for $12.5 million, which was arranged by JLL’s Capital Markets Debt Placement team led by Matthew Pizzolato, Thomas Didio Jr. and Salvatore Buzzerio.
Golden Glades Capital Management entered the Jersey City market in 2020 with its purchase of BeLa. In a statement, Pizzolato said his team was happy to continue its relationship with the buyer.
“Sound Point stepped up and offered an attractive floating-rate bridge loan that will allow our client to complete construction and stabilize this Class A multifamily asset,” he added.
BELLEVILLE INDUSTRIAL CENTER
Lincoln Equities Group purchased the 15.25-acre Belleville Industrial Center for $13 million. Lee & Associates – New Jersey, which represented seller Belleville Industrial Center Inc. in the transaction, announced the sale on Jan. 19.
The commercial real estate services firm said Lincoln Equities plans to redevelop the property into modern warehousing space.
According to Lee & Associates, the 295,000-square-foot site at 681 Main St. in Belleville has been owned and operated by the Ellis family since the 1970s.
Lincoln Equities is the full-service real estate company behind the transformative Lincoln Logistics Bayonne project at the former Military Ocean Terminal site in Bayonne.
“This disposition was especially meaningful as Lee & Associates was, once again, was able to help a family business capitalize on historically high demand for industrial land,” said Lee & Associates’ Jason Lynch, who represented Belleville Industrial Center Inc. along with Troy Wisse.
“Lincoln Equities was the right buyer for this asset,” Lynch added. “They had the expertise necessary to navigate the site’s unique challenges.”
75 Park Lane in Jersey City. – BUSINESSWIRE
JERSEY CITY PENTHOUSE
Strategic Capital’s recent Jersey City transaction set a record for the highest priced condo sale on the Gold Coast, with the new benchmark coming in at more than $1 million over the previous record set back in the fall.
On Feb. 1, the real estate investment and development platform of China Construction America announced the closing of a four-bedroom penthouse at 75 Park Lane in the city’s Newport neighborhood.
The residence features four-and-a-half baths and an 800-square-foot terrace.
The unnamed buyer was represented by Puja Yagnik of Coldwell Banker Realty in Hoboken.
According to that firm, Yagnik first showed her clients the unit in April 2021. The space was marketed briefly in July, but taken off when the deal was finalized.
“It’s been a long journey but worth it,” Yagnik said. “Penthouse 3801 is a very unique condominium with almost 4,000 square-feet of indoor space and another 800-square-foot terrace facing the Hudson River.
“New construction, world-class amenities, space, and New York City and Hudson River views are the main selling points,” she added. “Buyers are looking to stay in Jersey City long-term due to its vicinity to NYC and are looking for larger units due to the pandemic work-from-home requirements.”
In October, the state’s tallest residential tower — 99 Hudson — recorded a $4.4 million sale for its largest penthouse, setting the previous record.
The 37-story property at 75 Park Lane is part of the Park and Shore development, which features two residential buildings and a total of 429 condominiums.
Amenities at the Woods Bagot-designed property include a heated indoor swimming pool; wine-tasting lounge and private dining room; putting green; children’s play area; coworking lounge; a Sky Lounge with chef’s table, terrace and views of the New York City skyline; and more.
PARSIPPANY OFFICE PROPERTY
On Jan. 11, CBRE announced it completed the sale of an 85,000-square-foot office complex near the crossroads of Interstates 80 and 287 in Parsippany.
According to the firm, 299 Cherry Hill Road changed hands for $4.9 million. A CBRE Investment Properties team led the marketing campaign and represented the seller in the transaction.
Investment Properties group members Charles Berger, Mark Silverman and Elli Klapper worked with CBRE’s Thomas Mallaney.
At 60% leased to a number of long-term tenants, CBRE said there’s potential for a dramatic uptick in rent roll with further lease-up at the property.
Further, Berger said the sale offers even more potential upon stabilization for the unnamed, “out-of-town” buyer: Last year, CBRE worked the sale of a similarly sized property at 10 Lanidex Plaza W. for $9 million.
“Although the office sector has suffered during the pandemic, this sale demonstrates that well-positioned and well-located properties are still highly sought–after,” Berger said.
The three-story property sits on 5.86 acres of land with access to a Whole Foods and new multifamily developments.
