Natalie Kostelni Reporter Philadelphia Business Journal
A California real estate company has paid $107.74 million, or $201 a square foot, for a pair of industrial buildings in South Jersey.
Watson Land Co. bought a 283,040-square-foot building at 100 Huff Lane, and a 252,750-square-foot building at 191 Harmony Road, enters South Jersey with the purchase and expands its East Coast presence. The company, which focuses on buying and developing industrial real estate, owns properties in the Lehigh Valley.
The sale of the Cubes at Huff Lane and the Cubes at Harmony Road in East Greenwich sets a new high water mark on a per-square-foot basis for traditional a warehouse in South Jersey, according to JLL.
The seller was CRG, the real estate development and investment arm of Chicago-based Clayco.
The transaction embodies all of the aspects of the industrial market these days, particularly in South Jersey.
Banking on continued robust demand, CRG developed the two buildings in 2020 on speculation, or without any tenants lined up to fill the space. The location of the two buildings had all of the elements for success since it was adjacent to Interstate 295, a half mile from the New Jersey Turnpike and about 20 miles from Interstate 95.
The gamble CRG took paid off as have most of the speculative developments undertaken throughout the region. The real estate company landed long-term tenants for the buildings. Jaguar Land Rover North America, which is headquartered in Mahwah, New Jersey, leased the Huff Road building. Elogistics, a rapidly expanding Chinese-based third-party logistics provider, leased the Harmony Road property.
“When I first developed in Central New Jersey in 1999 at Exit 8A, I remember I was accused by my own company as being a renegade,” said Frank Petkunas, who is Northeast industrial leader for CRG and was then with a different company.
Full story: https://tinyurl.com/k8xbejru
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