PGIM Real Estate Acquires $275M Industrial Portfolio
The portfolio, comprising four newly-delivered New Jersey properties, adds 2.2 million square feet of industrial space to the firm’s core fund.
PHILLIPSBURG, NJ – PGIM Real Estate has acquired a 2.2-million-square-foot industrial portfolio from Bridge Development Partners, in a $275 million transaction.
The portfolio, comprising four newly-constructed properties, spans across Phillipsburg, NJ and Lopatcong, NJ, near Interstate 78. The buildings were delivered in early 2020.
“This portfolio sits in a strategic location that provides better access to New York City than other submarkets in the Lehigh Valley area,” says Frank Garcia, managing director and senior portfolio manager for PGIM Real Estate’s US core strategy. “The park was designed with the flexibility to cater to both large users and smaller tenants with a variety of space requirements, making it ideal for many logistics and e-commerce tenants seeking an optimal location at a discount to northern New Jersey rents.”
“Vacancies in the broader Lehigh Valley industrial market have trended to historically low levels and rents are forecasted to grow in line with the national average,” says Cathy Marcus, global chief operating officer and head of US equity at PGIM Real Estate. “The continued expansion of e-commerce across the US and the growing port traffic regionally will further strengthen industrial demand and result in additional upside for this portfolio.”
The PGIM real estate investment and financing business purchased the portfolio on behalf of its US core real estate strategy.
PGIM Real Estate’s transactions team, led by managing director, Todd Goldberg, executive directors, Ian Christ and Steven Oliveira and associate VP, Kevin Interlicchio, led the portfolio acquisition on behalf of PGIM.
The portfolio acquisition follows two recent industrial transactions executed on behalf of PGIM Real Estate’s U.S. core fund. In Q3 2020, the firm acquired a 15-building industrial portfolio for $425 million, and the firm additionally acquired a significant stake in a 30-property industrial portfolio, valued at $700 million, in partnership with Perlmutter Investment Company’s IAC Properties.
Currently, PGIM Real Estate owns 58 million square feet of industrial space in the US, and 120 million square feet globally.