22C — May 27 - June 9, 2016 — Industrial / Distribution Centers — M id A tlantic
Real Estate Journal
www.marejournal.com
I ndustrial R eal E state & D istribution C enters Lori Zuck and Alex Previdi of Transwestern broker transaction The Stro Companies acquires three building 95,000 s/f industrial portfolio in NJ for $7 million T E T E R B O R O / NORTHVALE, NJ — The Stro Com-
our portfolio. This acquisition is the third acquisition for Stro in the last two months. Over the last year we have completed six transactions en- compassing just under 500,000 s/f with a transactional volume of approximately $30 million. We are pleased we have been able to consistently grow the portfolio with great performing assets in top Northern New Jersey submarkets. We expect similar growth over the next year” said Mike Lachs , direc- tor of finance & investments. The transaction was bro- kered by Lori Zuck and Alex Previdi of Transwestern . n “We were pleased to acquire three, well-located and leased assets in highly demanded Bergen County locations. We were particularly pleased to add the Teterboro asset to the portfolio.” said Todd Miner- ley director of acquisitions & leasing. “This acquisition features properties in our core operating area. The locations, tenancies and quality of these assets are a synergistic fit to HFF arranges $6.7m financing for NJ industrial building vale, NJ is a single tenanted 18,000 s/f industrial building featuring 17 foot clear ceilings. Similar to 235 Pegasus Ave., this property has exceptional access to local amenities.
TORONTO, ON — While local, regional and global eco- nomic headwinds continue to impact commercial property markets, the industrial sec- tor is operating in a position of relative strength, evolving rapidly as owners and occupi- ers alike respond to changing demand. Traditional buildings are being viewed in a different light as they compete with new, innovative facilities catering to the burgeoning e-commerce, lo- gistics and distribution sectors. These are some o f the key trends noted in Avison Young ’s Spring 2016 North America and U.K. Industrial Market Report. The report covers the in- dustrial markets in 51 North American and U.K. metropoli- tan regions: Calgary, Edmon- ton, Halifax, Lethbridge, Mon- treal, Ottawa, Regina, Toronto, Vancouver, Waterloo Region, Winnipeg, Atlanta, Austin, Boston, Charleston, Charlotte, Chicago, Cleveland, Columbus, OH; Dallas, Denver, Detroit, Fort Lauderdale, Greenville, Hartford, Houston, Indianapo- lis, Las Vegas, Long Island, Los Angeles, Miami, Minneapolis, New Jersey, Oakland, Orange County, Orlando, Philadelphia, Pittsburgh, Raleigh-Durham, Reno, Sacramento, San An- tonio, San Diego County, San Francisco, San Mateo, Tampa, Washington, DC; West Palm Beach, Mexico City, Coventry, U.K. and London, U.K. “Our industrial market re- port has grown along with our company and has expanded this year to cover 51 markets in four countries, including additional coverage in the U.S. and U.K., and in Mexico panies (“Stro”) acquired a multi-tenanted, three build- ing, industrial/flex portfolio encompassing 95,000 s/f for $7 million. Located in Teterboro and Northvale, the portfolio includes the following proper- ties: • 370 North St., Teterboro, NJ is a three unit, 27,000 s/f flex industrial building with near direct access to I-80’s Exit 65 (Green St.). The building was acquired 100% occupied. The building features a cor- porate exterior and ample
370 North St., Teterboro, NJ
parking. • 235 Pegasus Ave., North- vale, NJ is a three unit 50,000 s/f flex industrial building. Acquired 80% occupied, the majority of the building is leased to Deluxe Media, a leading provider of services to
the entertainment industry including film, television and other media outlets. Located a short walk from Northvale’s retail core, the property pro- vides its tenants with a full array of convenient amenities. • 245 Pegasus Ave., North-
Avison Young releases Spring 2016 North America & U.K. Industrial Market Report
for the first time,” comments Mark Rose , chair and CEO of Avison Young. He continues: “Despite the well-documented issues being experienced in energy-produc- ing regions, the overall sense from across the Avison Young platform is that the industrial sector is in good shape. While traditional manufacturing processes continue to make up a major portion of the sector, the market is responding to e-commerce and other innova- tions that are underway with new approaches. Demand for new types of facilities and well- located sites is top of mind with developers, who are seeing po- tential renovation or redevelop- ment value in properties once considered obsolete. The rapid- order-fulfillment phenomenon is driving both leasing activity and investment sales.” “The continued rebound in U.S. fundamentals is a wel- come sight; meanwhile, the Canadian market’s diversity appears to be buffering the setback in the resource sector. In Mexico City, the logistics sector is gaining prominence, while the U.K. markets are seeing similar strong demand for logistics and distribution space,” said Rose. According to the report, of the 51 industrial markets surveyed by Avison Young across North America and the U.K., vacancy declined in 38 markets, increased in 12, and remained unchanged in one. Year-over-year, industrial vacancy rates were lower in 31 of 37 U.S. metropolitan re- gions surveyed, while vacancy declined in slightly more than half of the 11 Canadian mar-
kets. In Mexico City, vacancy increased marginally to 7%. In the U.K., Coventry and London reported vacancy rates of 6.2% and 3.1%, respectively. London ranks among the 10 tightest industrial markets surveyed in the report. “Even with all the noise surrounding economic woes in the oil patch, the Canadian in- dustrial market has fared very well,” said Bill Argeropoulos , principal and practice leader, research (Canada) for Avison Young. “Fundamentals remain fairly healthy and the sector continues to operate near full occupancy.” Argeropoulos continues: “The contraction in the energy sector has been countered by demand from other industries – even in traditionally energy-dependent markets – as increases in distribution, logistics and e- commerce activity cushion the blow. One cautionary note is that some markets may leave themselves open to oversupply in the future if current demand levels do not continue.” He adds: “In the North American context, Canadian markets claimed four of the 10 lowest vacancy rates, three of the 10 highest average asking net rental rates and two of the 10 busiest development mar- kets. However, in the rankings for 12-month absorption and new product completions, only Toronto made the continent’s top 10. Although Canada’s showings in these rankings are not as strong as in recent years, they are not surprising given the improving market conditions in the U.S. – which ultimately benefit Canada as well.” n
34-38 Industrial Way East
mately three miles from the Garden State Parkway. The Donato Group’s offices are lo- cated less than one mile away from the property. The HFF debt placement team representing the bor- rower was led by director Michael Klein . “The Donato Group had a unique opportunity to acquire an industrial flex building within the Eatontown market, where it controls a signifi- cant amount – approximately 980,000 square feet – of space and is the premier landlord in the market,” Klein said. “Lakeland Bank understood The Donato Group’s domi- nant market position and the market demand for flex space. The lender quickly jumped at the opportunity to work with the borrower to acquire the property and make improve- ments to the building’s facades that will help attract new tenants, retain existing ones and quickly bring the building more in line with the market’s high 90’s occupancy.” n
EATONTOWN, NJ — Hol- liday Fenoglio Fowler, LP (HFF) announced that it has arranged $6.7 million in acqui- sition financing for 34-38 In- dustrial Way East, a 106,918 s/f industrial flex facility in the southern Monmouth County, NJ community of Eatontown. HFF worked on behalf of the borrower, The Donato Group , to place the five-year, floating-rate loan with Lake- land Bank. 34-38 Industrial Way East is a two-building facility with 14 individual flex units ranging in size from 3,000 to 17,000 s/f. The facility features 22’ ceil- ing heights with an average column spacing of 25’ x 40’ and 308 parking spaces (2.88/1,000 s/f). The 83.6-percent-occupied buildings are home to PawBio- Science; Hanro of Switzerland; Augustine Consulting, Inc.; Alkaline Corp; KruseCom; and Meridian Health. Situated on 8.905 acres, the property is located within the 95-percent- occupied Eastern Monmouth Industrial submarket approxi-
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