Major real estate investors have acquired a newly built industrial property located in the Trenton industrial submarket.
Cushman & Wakefield announced the sale of the 171,269 square foot asset located at 539 Route 130 in the Township of Hamilton on June 14.
A CushWake team consisting of Gary Gabriel, Kyle Schmidt and Ryan Larkin represented the sellers, Penwood Real Estate Investment Management – through its fifth value-added investment vehicle Penwood Select Industrial Partners V LP – and Metrix Real Estate Services LLC in the transaction.
Financial terms of the deal were not disclosed.
“Since the onset of the pandemic, logistics demand has accelerated significantly as e-commerce spending has increased,” Gabriel said. “The property’s strategic location in a tight New Jersey industrial market, coupled with its long-term lease with a strong credit tenant, made it a very attractive acquisition.
In its First Quarter 2022 New Jersey Industry Report, Cushman & Wakefield reported a vacancy rate of 2.8% for Mercer County. Overall demand persisted in the sector, more than doubling from the previous quarter with 7.6 million square feet of new industrial deals closed in the first quarter – according to the report, the highest quarterly total since the mid-2021. Because of this growing demand — and the scarcity of space — asking and taking rents, CushWake said, are expected to reach “new all-time highs, especially in new construction and Class A facilities.
The 16+ acre site was once home to the Shoppes in Hamilton. The previous owners acquired the property in 2019, demolishing it to build the warehouse.
“This project, which required no zoning changes, received municipal approvals very quickly,” Metrix managing partner Michael Nachamkin said in a statement. “The site offered an exciting opportunity to convert the shopping center into high demand industrial space.”
Located off Exit 7A along Route 130 – and directly off Interstate 195 – the property also offers easy access to Routes 1 and 206. It was completed in 2021 and features clear heights of 36 feet, up to to 40 loading positions, parking for 150 cars and trailer storage. In February 2018, JLL Capital Markets arranged $12.66 million in construction financing for the project on behalf of Penwood and Metrix.
The site also includes a land lease with a bank branch.
“This was a complex redevelopment that was delivered on time thanks to the expertise of the entire team,” said Penwood Vice President of Acquisitions Andrew MacDonald. “The end result is a state-of-the-art asset that was in high demand. Excellent execution by everyone involved.