Community Distributors is the ownership entity for the Drug Fair and Cost Cutters retail chains, both regional operations. The company uses the space primarily for distribution purposes, including supplying some 40 Drug Fair stores in nine New Jersey counties. Approximately 24,000 sf of the occupied space is used for offices related to company management and the distribution operations.
The tenant was represented in the negotiations by Tom Kirczow and Bob Sticht of Grubb & Ellis' New Jersey offices, based in Fairfield, along with Joel Lubin and Charles Fern of Binswanger/Klatskin, based in Teterboro, NJ. The owner of the asset, the San Mateo, CA-based Glenborough Realty, was repped in the transaction by Dennis McConnell of Cushman & Wakfield of New Jersey, based in East Rutherford.
The asset represents Glenborough Realty's only industrial property among its current holdings in the Garden State. The rest of the REIT's portfolio here consists of 10 offices properties totaling more than 1.3 million sf. The largest of the assets is the company's CenterPointe campus, a 325,000-sf complex in nearby Bridgewater.
The renewal is a key deal for a market in which the industrial vacancy rate is slightly higher than the statewide rate, but currently holding steady. "The standard industrial availability rate for the first quarter of 2004 for the Piscataway/I-287 South submarket was approximately 8.7%, compared to 8.8% a year ago," according to Kirczow.
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