Hoboken-based Faropoint on Tuesday said it has completed the acquisition of two Class B industrial properties totaling 113,979 square feet for $28.3 million. The buildings are located in the Ridgefield submarket in the Meadowlands, and are occupied by Biazzo Dairy Products Inc., a nationally recognized, privately held producer and distributor of high-quality dairy products, namely mozzarella and ricotta cheese.
Located at 1145 Edgewater Ave. and 1125 Hendricks Causeway, the properties offer connectivity to major transportation hubs within the immediate vicinity, and are within minutes of the Interstates 95 and 80, the New Jersey Turnpike, Route 46 and the George Washington Bridge, providing easy access to the New York City metropolitan area, as well as other regional and national markets.
Viewpoint Advisors represented Faropoint as the buyer in the transaction.
“This transaction is an exciting continuation of Faropoint’s core location acquisition strategy, in particular due to its limited term risk, which should translate to superior risk adjusted returns,” Orry Michael, director of acquisitions, Greater New York, at Faropoint, said. “With a track record as a well-capitalized firm with a long-term view, Faropoint is competitively positioned to provide liquidity for similar opportunities that, as a result of cyclical fluctuations, other capital sources might not be able to pursue.”
The acquisition was negotiated as a long-term, market-rate sale-leaseback with the existing tenant, Biazzo.
Biazzo has conducted operations at the location for more than 30 years and is a well-established firm with strong private credit, and a reputable brand in the industry.
The two buildings span a total of 113,979 gross square feet, with the property located at 1145 Edgewater Ave. totaling 57,599 square feet and 20-foot clear ceiling height with six dock-high loading positions. This building serves as Biazzo’s main processing and production plant and benefits from 15,000 square feet of freezer and cooler space that is utilized for same-day and overnight storage. The building located at 1125 Hendricks Causeway spans 56,380 square feet with 15-foot-8-inch clear ceiling height and is equipped with five front-loaded dock-high positions for all outbound distribution to the local and regional customer base.
“Our firm’s established presence in the Greater New York and New Jersey metros and our relationships on the ground allowed us to close this deal at a very attractive price point relative to other comparable property sales and land sales in the area,” Itay Ron, Faropoint’s market officer, Northeast Region, said. “Given the infill location and the long-term lease in place, we see this as a defensive acquisition that will still benefit from the secular tailwinds in industrial real estate without the short-term volatility.”
Brokers Frank Costa III, Jim Isbell and Brian Sherlock with Viewpoint Advisors facilitated the sale.
“With the industrial market being the crown jewel for commercial real estate investments, and in concert with the cost of capital, opportunities that make sense are limited and challenging,” Costa, managing principal at Viewpoint Advisors, said. “The compressed due diligence and complex transaction structure of sale-leasebacks means coordination is the key to success. Viewpoint Advisors strategically elected to represent Faropoint upon comprehending the seller’s goals, and it was a pleasure to work with a buyer of their caliber.”