PISCATAWAY, NJ—DWS Group has acquired 100 and 300 Ridge Road, two recently completed distribution centers in Rockefeller Group Logistics Center, Piscataway, NJ from Rockefeller Group and its joint venture partner PCCP.
“The sale of these completed buildings at Rockefeller Group Logistics Center shows the high level of demand for class-A industrial property in New Jersey,” says Heath Abramsohn, Rockefeller Group vice president and regional director for the New Jersey and Pennsylvania region. “DWS is a welcome addition to Rockefeller Group Logistics Park. These two buildings will continue to benefit from strong institutional ownership for years to come.”
This marks the first two sales at the logistics park, where Rockefeller Group is developing five buildings totaling 2.1 million square feet.
The first building, a 725,000-square-foot distribution center located at 300 Ridge Road, was fully leased during construction to Best Buy. It features 36-foot clear ceiling heights, 137 cross-docked loading positions and 195-foot truck docks. The second building, at 100 Ridge Road, is a 311,000-square-foot distribution center that is leased by two tenants: Fujitsu General America and Humanscale. Each tenant occupies approximately 155,000 square feet.
Cushman & Wakefield’s Gary Gabriel represented the seller and procured the buyer with members of the firm’s New Jersey capital markets team including Andrew Merin, David Bernhaut, Brian Whitmer, Kyle Schmidt and Ryan Larkin. Cushman & Wakefield industrial brokerage specialists Stan Danzig and Jules Nissim also supported the assignment as exclusive leasing agents for Rockefeller Group Logistics Center.
“There was considerable depth of institutional interest – reflecting a sustained appetite for quality industrial product in New Jersey,” Schmidt says. “Rockefeller Group Logistics Center has validated the 287 corridor investment thesis, with the market emerging as a target for investors and users alike.”
Three buildings totaling more than one million square feet are currently under construction on the site.
“With current activity, we anticipate that this project will be fully leased and built out within 18 months,” Nissim says. “Its success is reflective of Rockefeller Group’s long track record of successful Garden State developments, as well as the shifting market fundamentals that are driving tenants to the 287 market.”
Submarket rents have soared 69% over the past five years and currently maintain 0.7% vacancy rate, according to Cushman & Wakefield research. Tenants in the market enjoy the presence of a deep regional labor pool, proximity to major thoroughfares serving the Northeast and Mid-Atlantic corridors, and easy access to the Port of New York/New Jersey.