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TETERBORO, NJ-Under a complex sale-leaseback agreement, Ford Motor Co. is selling its sprawling 606,000-sf New York-area parts distribution center to AMB Property Corp. The price tag was set at just under $32 million, according to Bill Waxman, first vice president at CB Richard Ellis’ Paramus, NJ office. CBRE represented both the buyer and the seller in the deal.

Under the terms of the agreement, Ford will continue to occupy the facility through the end of 2004, at which time it will be available for lease from the San Francisco-based AMB Property Corp., which has its East Coast offices in Boston. “Ford is selling six or seven distribution centers across the country,” Waxman tells GlobeSt.com. “They will be opening more modern, smaller distribution centers in strategic locations to replace them.”

Specifically, the targeted 2004 move-out date is being timed to coincide with Ford’s establishment of a new distribution facility in the New York/New Jersey metro area. No details of the site search have been made available and Ford officials could not be reached for comment.

“This is a strategic location for Ford, for their New York area distribution,” according to Waxman. “Ford is looking to improve their distribution – it’s all part of their master plan.”

The building itself sits on a 27-acre site on heavily traveled Route 46 near Teterboro Airport, a general aviation facility. Originally built in 1974, the high-ceilinged facility was expanded to its current size in 1972. Pending Ford’s move-out date, “we will start marketing the building immediately, as of this minute,” Waxman tells GlobeSt.com. “Interest is building now – we have several interested parties. No leases are being drafted and no negotiations are going on, but several parties are showing interest.”

Besides its location near Teterboro Airport, as well as its proximity to I-80, the site offers some interesting tax benefits. “Taxes in Teterboro are very low, something like 45 cents per sf,” according to Waxman.

Waxman was assisted in the transaction by fellow CBRE staffers Gerry Bridges, first vice president; senior associate Nicholas Nitti; and sales assistant Carrie Brown. “We represent Ford nationally, so we also worked with CBRE’s Ford team from Chicago,” according to Waxman.

For its part, AMB Property Group owns, manages or has under development a total of almost 98 million sf of industrial space, either directly of through joint ventures. Its properties are concentrated in major distribution markets across the country, and most of them are near airports, ports and freeway systems.

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