New York-based Taconic Partners, one of the area’s premier, vertically integrated real estate development firms, has announced the acquisition of a 360,000-square foot industrial facility in North Brunswick, N.J., for $74.3 million.
Located at 1735 Jersey Avenue, the fully leased property is Taconic’s second industrial acquisition in New Jersey as the firm expands its presence in the sector. The acquisition is supported by $46.6 million in financing from J.P. Morgan.
Situated on approximately 17 acres of land off Exit 9 of the New Jersey Turnpike, the highly functional, Class B industrial asset offers 24 loading positions, direct rail access, up to 24-foot ceilings, and accessory industrial outdoor storage space. Major tenants include Kamps Inc., one of North America’s largest pallet distributors and manufacturers, and Luxe Living Design, a high-end event furniture rental company. A solar developer has also been engaged to install a rooftop photovoltaic system.
The property is well-located within the Central Jersey industrial market, which continues to see substantial leasing activity due to its deep labor pool, proximity to the port, and its connectivity to one-third of the U.S. population within a day’s drive.
“This acquisition represents a strategic opportunity to continue to expand our New Jersey industrial portfolio with a fully stabilized property at an attractive going-in yield with future upside,” said Chris Balestra, President and Chief Investment Officer, Taconic Partners. “As we look to expand our industrial presence in the Tri-State market, 1735 Jersey Avenue was a highly attractive, off-market opportunity in a submarket with strong tenant demand and low vacancy for Class B product.”
The acquisition was brokered by a JLL investment sales team including Jordan Avanzato, Managing Director; Marc Duval, Senior Managing Director; Nicholas Stefans, Senior Director; and Jason Lundy, Director. Financing for the acquisition was arranged by a JLL capital markets team including Evan Pariser, Senior Managing Director, and Aaron Niedermayer, Senior Managing Director.
