Officials at Devli Real Estate are still bullish on the industrial sector in the state, citing its ties to the nation’s supply chain. They recently showed how much.
The New York City-based firm added to its industrial portfolio by acquiring four properties, totaling approximately 80,000 square feet of combined space, in Moonachie, North Bergen, Fair Lawn and Howell. The cost of the properties was not disclosed.
These acquisitions come shortly after the company acquired a 38-acre, 461,433-square-foot industrial property in Bedford, Pennsylvania.
Chief Investment Officer Mark Devli said the acquisitions make sense.
“New Jersey’s industrial market has seen unprecedented demand over the last 18 months, which continues to drive up rents at record-breaking levels,” he said. “The latest statistics show that the New Jersey industrial market has had the highest rent growth of any major market in the U.S. this past year.
“When we factor in anticipated new construction industrial deliveries over the next year, New Jersey’s industrial market will still be severely undersupplied, which we believe will continue to drive rents up across the board for all industrial real estate. The increased cost of construction will also impact rents going forward.”
Devli’s acquisitions include a fully leased, three-building, 40,000-square-foot industrial portfolio in Howell at 331 Fairfield Road. Built in 2005, each building caters to local trade tenants with flex units ranging from 1,200 to 15,000 square feet.
Additionally, purchases include a vacant 16,000-square-foot industrial building at 2 W. Commercial Ave. in Moonachie and a vacant 7,200-square-foot industrial condominium with cold storage at 15-01 Pollitt Drive in Fair Lawn.
Devli also purchased a 16,000-square-foot industrial complex on 2 acres at 5401 Tonnelle Ave. in North Bergen, which has a myriad of potential development opportunities.
Devli said it’s imperative to be nimble and quick in this market that is seemingly changing by the day.
“We could not be prouder of our team’s ability to source quality deals and to move swiftly in closing transactions, two qualities that are paramount in today’s competitive industrial landscape,” he said. “These properties are all well-located and fit well in our existing industrial portfolio of high-quality, functional industrial buildings. We believe in the continued success of the industrial sector, and plan to continue deploying capital in the space and have a significant acquisition pipeline in the works.”