10-Building Mixed-Use Portfolio Sells to Denholtz

CLARK, NJ — Denholtz Associates has acquired a 10-building, 283,201-square-foot mixed-use portfolio in Clark, NJ, for $22.15 million.

The East Rutherford, NJ-based Cushman & Wakefield's Metropolitan Area Capital Markets Group team of Andrew Merin, David Bernhaut, Gary Gabriel and Nicholas Karali represented the seller and procured the buyer.

“The sale provides the new ownership with upside potential from redeveloping portions of the property as tenants roll over,” says Karali. “L'Oreal is exploring the potential of constructing its own facility across the street, which would create further opportunity for redevelopment.”

Largely constructed between 1962 and 1968, with some additional expansion in 2002 and 2006, the Clark portfolio is situated off Central Avenue along Terminal Avenue in the Union County community. The county is home to numerous national and international corporations in such industries as pharmaceuticals, technology and consumer goods.

“A recent rezoning of Terminal Avenue has added a wider range of commercial uses, enhancing the value to the new owner,” says Karali. “The sale represents an opportunity to acquire a large block of space in an infill market, which has historically held strong occupancy.”

Located directly off Exit 135 of the Garden State Parkway and minutes from I-78 and the New Jersey Turnpike, the portfolio was 97 percent occupied at the time of sale. The site has served as the location of L'Oreal's North American R&D facility since 1990, and other major tenants include Retro Fitness, New York Community Bank, Kindercare, The Lawbook Exchange, and as the headquarters of the Promptcare Companies. The property was rezoned in 2010 for a broad range of commercial and retail uses.