PASSAIC, NJ-It was a whopper transaction. CBRE Group reeled it in. The firm has accomplished the sale of a 1.64-million-square-foot industrial site with 51 buildings here in what brokers say is the largest such sale in more than a decade.
The 31-acre site at 90 Dayton Avenue is also one of the last major developable sites in one of the state’s most densely populated markets.
Several CBRE teams collaborated to represent the seller, Passaic Industrial Center Associates, and found the buyer, a Private Capital Group investor. The purchase price was not disclosed.
“The new owner intends to stabilize and hold the property for investment purposes while developing a portion for retail use,” according to a CBRE announcement. Currently, there are only industrial warehouse, manufacturing and distribution buildings on the property.
The site and its collection of buildings has been in operation since 1894. In 1994, the city of Passaic was designated an Urban Enterprise Zone, making the property eligible for tax benefits and incentives.
CBRE’s New York-based team of Darcy Stacom, vice chairman, and Paul Lebowitz, executive vice president, teamed with Charles Berger of CBRE New Jersey’s Private Capital Group and Elli Klapper of the NY Private Capital Group to complete the sale.
The Industrial Group’s Bill Waxman and Mindy Lissner have been brought in to handle leasing and Cheryl Woodrow of Asset Services will manage the property. Klapper and Berger are continuing CBRE’s relationship with the new owner and will bring in the New Jersey Retail Group to lease that part of the development when it is ready.
“This complex transaction took time, but based on the collaboration of all of the groups involved, we were able to bring about a most satisfactory conclusion for our client,” said Klapper. “This site is one of the oldest complexes in Passaic and represents one of the original planned industrial communities. It will be interesting to see how it is transformed and revitalized for future generations.”
Berger noted that the inventory of available land for development in the region has shrunk dramatically in the last ten years. “This particular site offers the strategic opportunity for a multitude of mixed-use developments,” he said.
The site is situated off Route 21, with easy access to Routes 3, 46, 80, the Garden State Parkway and the New Jersey Turnpike. It is close to the Passaic train station and 15 miles from Newark Liberty International Airport and Port Newark/Elizabeth.
Various retailers, including Home Depot, Kmart, Fashion Bug, Pathmark, GNC and Walgreens are located on surrounding properties.