A 550,000-square-foot industrial property in Parsippany has been sold for $85.25 million, according to its joint venture ownership group.
The venture between developer Turnbridge Equities and real estate investment firm Harbor Group International LLC sold 100 Jefferson Road to JFR Global Investments.
The joint venture acquired the property in October 2018 for $60.3 million from current tenant PNY Technologies, and invested in a $4 million capital improvement campaign to turn the building into a Class A industrial facility.
“The sale of 100 Jefferson Road completes our business plan and showcases Turnbridge’s successful value-add investment strategy,” Jason Davis, managing director at Turnbridge, said in a prepared statement. “The northern New Jersey market continues to be attractive to industrial investors because of its ideal location, combined with a lack of new warehouse supply and continued strong demand drivers.
“The buyer recognized this as a unique opportunity to acquire a newly renovated, Class A asset that offered stable cash flow with significant upside, given the remaining vacancy.”
The property was 28% occupied when the joint venture bought it, but is now nearly 64% leased to both PNY and Vitaquest International. PNY still occupies 155,000 square feet as its global headquarters, while Vitaquest occupies 200,000 square feet, including an under-construction manufacturing facility. A 200,000-square-foot, subdividable suite remains vacant.
A JLL Capital Markets team that included Jose Cruz, Jordan Avanzato, Marc Duval, Michael Oliver, Kevin O’Hearn and Steve Simonelli represented the seller in the deal.
“We are very pleased with the outcome of this transaction,” Cruz said in a statement. “Demand for suburban industrial continues to be very strong and the remaining lease up of this asset gives the buyer significant upside on which to capitalize.”
