The seller was Production Realty 1319 LLC, represented by Bob Harmon, owner of Production Services Inc. The latter, which provides packaging and processing services for the personal-care, cosmetics, fragrance and household-products markets, will continue to occupy the entire building under the terms of the sale-leaseback. Production Services has signed a lease carrying a 10-year term.

The deal was put together by David Zimmel, president of the Edison-based Zimmel Associates. Both Kirshenbaum and Harmon are long-time clients of the brokerage firm.

"Recently, Bob Harmon wanted to do a sale-leaseback in order to take advantage of today's strong industrial real estate market in New Jersey," says Zimmel, who brokered the initial sale of 1319 N. Broad St. to Harmon six years ago when Production Services needed to expand. "Once we put that information out there, we had a lot of interest in the building on the part of potential investors.

"This transaction is an attractive means for the owner to draw on a readily available source of capital," Zimmel says. "This type of transaction permits the seller to liquidate their equity in the real estate while retaining operating control of the property. Simultaneously, the long-term lease creates a stable investment opportunity and a more predictable return for the buyer-investor."

The building itself fronts on Route 22 and N. Broad Street in this Union County community. The asset includes a 15,000-sf component of built-out office space.