Updated HelloFresh leases 352K sq.ft. distribution center in Newark

Joshua Burd//February 1, 2016//

Updated HelloFresh leases 352K sq.ft. distribution center in Newark

Joshua Burd//February 1, 2016//

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Meal kit delivery service HelloFresh will operate from a 352,000-square-foot distribution center in Newark after signing a lease with Prologis Inc., the global industrial landlord announced Monday.(Editor’s note: This article was updated with additional information from CBRE.)

Meal kit delivery service HelloFresh will operate from a 352,000-square-foot distribution center in Newark after signing a lease with Prologis Inc., the global industrial landlord announced Monday.

In a news release, Prologis said the site is part of a portfolio it acquired last fall from The Morris Cos. The standalone building at 60 Lister Ave., which was developed on a speculative basis, is one of two Class A industrial buildings included in that portfolio, sitting just off New Jersey Turnpike Exit 15E.

“The building’s design, abundant trailer storage and immediate access to the Greater New York area made this an attractive investment for us, and we were able to lease the building within two months of the closing,” Pete Crovo, senior vice president and New Jersey market officer for Prologis, said in a prepared statement. “We look forward to continuing to develop our relationship with HelloFresh.”

News of the deal comes four months after state officials approved a 10-year, $25.1 million tax credit for HelloFresh to help it expand its operations here rather than a site in Pennsylvania’s Lehigh Valley. The Berlin-based company, which was founded in 2011, told the Economic Development Authority the project would allow it to retain 89 New Jersey-based employees and create an additional 321 jobs.

“Logistics is critical to our business of delivering fresh, high-quality food to our customers,” said Seth Goldman, CEO of HelloFresh US. “With the New York tri-state area being an important market, the location of Prologis’ distribution center was a key consideration in our leasing decision.”

Thomas Monahan, Noah Balanoff, Anastasia Lazarides and Gerard Monahan of CBRE Group represented Prologis in the transaction, according to a CBRE news release. Michael G. Walters and Russell Verducci of NAI James E. Hanson represented HelloFresh.

The property is part of the 3.2 million-square-foot Class A industrial portfolio that Prologis acquired last November from The Morris Cos. Monahan also represented Prologis in that transaction.