CBRE on Wednesday said it arranged the $9.6 million acquisition of a fully leased 44,300-square-foot industrial property in Oakland to Faropoint.
Faropoint, a leading real estate investment firm focused on last-mile industrial properties in high population growth markets, acquired the property located at 153 Bauer Drive from Oakland Management and plans to hold it as an industrial investment property.
The CBRE Tri-State Investment Properties team of Elli Klapper, Jeremy Wernick, Mark Silverman and Charles Berger, in conjunction with CBRE’s Mark Trevisan, Kevin Dudley, Nick Klacik and Chad Hillyer, represented Faropoint — which has U.S. headquarters in Hoboken — in the negotiations.
“The sale of this property represents one of the numerous industrial transactions our team has completed in New Jersey in just the past few months, demonstrating again the industrial market’s dominance in New Jersey,” Wernick stated. “Across the region, and particularly in today’s tumultuous market, industrial properties are highly coveted due to the continuing supply chain shortages and need for warehouse and distribution centers.”
“More than ever, investors recognize the crucial need for these types of properties, both existing and new construction,” Klapper added. “There has been a paradigm shift in the market, as investors and developers see the long-term value of industrial commodities such as this, with excellent proximity to both vehicular transportation veins and major ports, and they are looking to expand their portfolios for long-term stability and future growth.”
153 Bauer Drive is located just minutes from Interstate 287, which provides direct access to major thoroughfares throughout New Jersey and New York and Port Newark/Elizabeth. Its last-mile distribution location is within close proximity to the strongest consumer markets in the Northeast.
“This was a strategic acquisition made by our team to expand our presence in northern New Jersey where we already have considerable holdings,” Orry Michael, Faropoint director of acquisitions, Northeast, stated. “High barriers to entry continue to stifle Class A development in the Northwest Bergen submarket due to constraints for readily available land zoned for industrial use. The area is experiencing surging demand and significant rental rate growth as tenants search for high-quality, functional product. We anticipate market fundamentals will remain strong, despite some of the volatility seen in other segments of the market.”
