Arizona-based Creation, a real estate development and alternative investment firm, on Tuesday announced its official expansion into the Northeast as it moves forward with approximately $200 million in industrial developments across three marquee sites in New Jersey and New York.
Creation has been pursuing opportunities in the region since early 2021, attracted by strong underlying market fundamentals, excellent population and employment trends and high barriers to entry that make new development challenging. Last month, the firm announced the hiring of Luke Georgiadis, vice president of transactions, who will continue to grow Creation’s footprint on the East Coast, and its New York City office opening in early 2023. These first three projects by Creation were done as part of a $1 billion joint-venture portfolio with institutional investors advised by J.P. Morgan Global Alternatives.
In Newark, Creation is working through approvals on a proposed site plan for McClellan One, a 120,000-square-foot, Class A logistics building on a world-class, 10-acre site directly adjacent to Newark Liberty International Airport. With 90 trailer stalls and rare freeway frontage, the site is located in the strongest submarket in all of northern New Jersey, with close proximity to the Port of New York and New Jersey, the New Jersey Turnpike and New York City. Creation sourced the acquisition off-market, an unheard-of move in the area, through the former owner that operated a long-term parking facility. Construction will take approximately 12 months and is anticipated to begin in late fall 2023.
Read more from ROI-NJ:
- Creation RE, J.P. Morgan form joint venture, plan $1B industrial pipeline across 4 states, including N.J.
- Cushman & Wakefield arranges $27.3M in financing for McClellan One development in Newark
“The Newark acquisition is a once-in-a-decade find and a crowning achievement in our real estate portfolio, which allows us to really set the stage for our growth and expansion into the region,” Bob Agahi, co-founder of Creation, stated. “In the same way, Creation is poised to establish a new Class A standard on Long Island with these two underway industrial developments. We’re also actively pursuing two additional northern New Jersey acquisitions as we seek rapid growth in the area.”
In Melville, New York, Creation began site work last week on Baylis 495 Business Park, a 103,500-square-foot, Class A warehouse/distribution center that was recently preleased to Keurig Dr. Pepper on a long-term basis at a record-breaking rental rate. In nearby Islandia, New York, Creation received approval to develop Old Nichols Commerce Center, a 178,000-square-foot, Class A warehouse/distribution center situated on 12 acres at the entrance to the Long Island Expressway at Old Nichols Road.
Founded by David Sellers and Bob Agahi in 2018, Creation’s portfolio includes $4.65 billion of ground-up developments in major growth corridors of New Jersey, New York, Arizona, California, Colorado, Tennessee and Texas. This year, the company will experience even further growth with nearly $1.5 billion in mixed-use office, retail and multifamily projects in the pipeline.