Faropoint, a leading tech-enabled real estate investment firm focused on last-mile industrial properties in high population growth markets, purchased a 151,000-square-foot industrial asset in Branchburg, according to a Monday announcement from Cushman & Wakefield. The final sale price was $23,750,000.
With more than 400 warehouses acquired to date, Faropoint is among the most active buyers and fastest growing industrial private equity companies in the U.S., focusing on small to medium last-mile logistics assets.
Located at 3140 Route 22, the building is comprised of 151,000 square feet on 13.38 acres of land and features seven loading docks, one drive-in door and 18-foot ceilings. The property offers direct access to Interstate 287 and offers convenient access to the region’s major highways including the New Jersey Turnpike, Interstate 78 and the Garden State Parkway. The asset is a 45-minute commute from New York City and eastern Pennsylvania.
“For a variety of reasons, this opportunity was attractive given its significant in-place yield, low basis and proximity to highly trafficked interstates including the I-287 corridor, I-78, I-80 and Route 22,” Orry Michael, Faropoint director of acquisitions, Greater New York said. “Local demographics are also extremely favorable, with several Fortune 500 businesses and pharmaceutical companies headquartered within the immediate vicinity. Most importantly, the asset serves as Marcolin USA’s North American headquarters and sole distribution facility, which in turn, allows for a long-term commitment to both the tenant and the asset.”
Cushman & Wakefield’s Gary Gabriel, Kyle Schmidt, Andrew Schwartz, Jordan Sobel, Ryan Larkin and Andre Balthazard represented the seller, Viva Branchburg LLC, and procured the buyer, Faropoint, in the transaction.
“The property is ideally situated in the Interstate 78 corridor submarket and benefits from direct access to New York City,” Schwartz said. “As a single-tenant industrial building, the asset offers a predictable income stream from a long-term, strong credit tenant.”
“The bid-ask spread between buyers and sellers together with turbulent capital markets have made identifying deals with strong return metrics increasingly difficult,” Itay Ron, Faropoint Senior Vice President of Northeast Markets said.