Clarion Partners bought the building, which is located in the New Jersey Turnpike Exit 8A industrial submarket, on behalf of Clarion Lion Properties Fund, a core-style, open-end fund that invests in industrial, multifamily, office and retail properties. The sale was arranged on behalf of Volkswagen by Trammell Crow Co., which has its New Jersey offices in Florham Park.
Volkswagen of America is continuing to occupy 100% of the trophy-grade industrial building – but not for long. In May, the company is slated to move its operations into a new, 928,000-sf facility currently nearing completion a few miles down the New Jersey Turnpike/Route 1 corridor in Cranbury, NJ. The new building, which VW will occupy under a long-term lease with Cabot Industrial Trust, will serve as the company's major East Coast parts distribution hub.
The move will leave the building's new owner, of course, with more than 312,000 sf of vacant industrial space to find tenants for. "Our research identified strong market fundamentals supporting the Exit 8A submarket," according to Stephen Hansen, portfolio manager for the Lion Properties Fund. "We believe that this submarket has solid, long-term growth prospects.
"This asset is a first generation warehouse/distribution facility, making it very attractive to sophisticated space users in this market," Hansen continues. "One Commerce Drive is an excellent addition to our portfolio."
"Both sides are pleased with the transaction," adds Paul Torosian, a principal of Trammell Crow Co. "We wish clarion success with leasing it."
Founded just over 20 years ago, pension fund advisor Clarion Partners and its affiliates current manage more than $10.4 billion in assets for institutional and private clients in both private and public debt and equity.
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