Hampshire Flips FedEx Occupied Spec Industrial to TIAA-CREF for $49.5M

CARTERET, NJ–Confirming its early expectations for the Exit 12 industrial market,The Hampshire Companies has flipped 200 Milik Street for $49.5 million to TIAA-CREF. Hampshire began construction of the 230,000 square-foot industrial building on a speculative basis and fully leased the building to FedEx Ground before it was finished.

“With available land sites near the port dwindling, we identified Exit 12 of the NJ Turnpike as a market well-situated to capture demand from the expansion of the Port of Newark/Elizabeth and the rapidly expanding e-commerce market,” says Todd Anderson, principal for The Hampshire Companies. “FedEx's decision to sign a long-term lease prior to completion of the building, followed by the sale less than three years after its development, is a testament to Hampshire's vision.”

Jeffrey Dunne, Kevin Welsh and Brian Schulz of CBRE Institutional Properties represented The Hampshire Companies and procured the buyer.

“The development of 200 Milik was driven by Hampshire's view that there was a limited supply of modern warehouse/distribution buildings while there was increasing demand from tenants willing to pay a premium for state-of-the-art infrastructure,” says Welsh. “This, combined with Hampshire's long-term belief in Exit 12 as a premier location, was integral to the successful execution of this development.”

The property, which contains 232,134 square feet of warehouse/distribution space, was constructed in 2012 with modern specifications including 36-foot clear, 52-by-50-foot column spacing, ESFR sprinkler, and up to 40 loading docks.

The Exit 12 industrial market, also known as Port South, has evolved into one of the leading industrial markets in New Jersey, evidenced by a rise in construction and substantial tenant commitments. A key component can be traced to the 2010 completion of the Exit 12 interchange expansion.

At 200 Milik, Hampshire demolished the former Pathmark office headquarters in 2011, and developed a modern generation industrial building based on its expectations for the Exit 12 market. Since 2007, more than 4.7 million sq. ft. has been developed or is close to being completed in the market (a 24% increase in inventory), which has attracted internationally recognized tenants such as Amazon and FedEx.