X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HILLSIDE, NJ-SK Realty Management, a locally based investment group headed by Sam Kirshenbaum, has acquired the 206,000-sf industrial building located at 1319 N. Broad St. here. The sale price was $6.8 million, which factors out to $33 per sf.

The seller was Production Realty 1319 LLC, represented by Bob Harmon, owner of Production Services Inc. The latter, which provides packaging and processing services for the personal-care, cosmetics, fragrance and household-products markets, will continue to occupy the entire building under the terms of the sale-leaseback. Production Services has signed a lease carrying a 10-year term.

The deal was put together by David Zimmel, president of the Edison-based Zimmel Associates. Both Kirshenbaum and Harmon are long-time clients of the brokerage firm.

“Recently, Bob Harmon wanted to do a sale-leaseback in order to take advantage of today’s strong industrial real estate market in New Jersey,” says Zimmel, who brokered the initial sale of 1319 N. Broad St. to Harmon six years ago when Production Services needed to expand. “Once we put that information out there, we had a lot of interest in the building on the part of potential investors.

“This transaction is an attractive means for the owner to draw on a readily available source of capital,” Zimmel says. “This type of transaction permits the seller to liquidate their equity in the real estate while retaining operating control of the property. Simultaneously, the long-term lease creates a stable investment opportunity and a more predictable return for the buyer-investor.”

The building itself fronts on Route 22 and N. Broad Street in this Union County community. The asset includes a 15,000-sf component of built-out office space.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.