ASG Equities has tapped Newmark to market a portfolio of 4 absolutely leased warehouses encompassing 1M SF in Secaucus, a deal aiming for $400M per SF.
Whereas bids on the person properties will probably be thought of, the portfolio is being touted as a uncommon alternative to realize industrial scale on the NJ Meadowlands, which has been one of many hottest industrial markets within the US lately, in accordance with a report in Inexperienced Road.
A potential purchaser’s preliminary annual yield on the portfolio could be 4.6%, based mostly on internet working revenue of $18.5M. The portfolio has a weighted common remaining lease time period of 10.9 years, with in-place rents averaging $18.15 per SF, properly under the market-rate common of $25.15 per SF.
UPS is leasing three of the 4 Secaucus warehouses, which has leases encompassing 693K SF with 12.2 years of remaining time period, producing $11.9M of NOI yearly.
The warehouses leased by UPS, which had been constructed from 1967 to 1978, are positioned at 1 Century Manner (434K SF); 70 Enterprise Avenue North (162K SF) and 700 Secaucus Highway (97K SF). UPS, which owns a campus adjoining to 1 Century Manner that serves as a regional hub, is anticipated to resume its lease on the Century Manner facility, the report mentioned.
UP is subleasing the house at 70 Enterprise Avenue and 700 Secaucus Highway, which is being marketed as a chance for a purchaser to transform and broaden these properties to be used as knowledge facilities.
The fourth warehouse within the package deal encompasses 321K SF at 1 Emerson Lane. Inbuilt 1978, the ability is absolutely leased to ZT Methods beneath an settlement that expires in eight years and generates $6.5M of NOI.
If the Secaucus warehouse portfolio provided by ASG fetches $400M, the deal will change into the most important industrial commerce in northern NJ this 12 months. So far, the most important industrial commerce in NJ occurred final month, when Morgan Stanley and Saxum Actual Property bought a 1.2M SF portfolio in Morris County for $217.5M.
The statewide file for an industrial sale in NJ was set in 2021 with the $265M sale of a 1.1M SF distribution heart in Logan Township close to Philadelphia.
Whereas nationally funding gross sales in industrial properties have dropped 39% throughout H1 2023 in a year-over-year comparability, industrial gross sales in New Jersey have remained brisk, in accordance with Inexperienced Road’s Gross sales Comps Database.
About $2.1B of offers value at the least $25M have modified fingers this 12 months, placing NJ on monitor to exceed final 12 months’s complete of $2.3B, in accordance with Inexperienced Road.
