X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

CRANBURY, NJ-First Industrial Realty Trust has acquired 258 Prospect Plains Rd., an 886,826-sf industrial building here, from StratREAL. The sale price was not disclosed, but industry sources with knowledge of the transaction put the number in the $90-million range, which factors out to approximately $101.50 per sf.

“This is among the highest quality industrial properties that our group has sold,” says Andrew Merin of Cushman & Wakefield’s Metropolitan Area Capital Markets Group of East Rutherford, who orchestrated the deal along with C&W colleagues David Bernhaut, Gary Gabriel and Jose Cruz. “Having a long-term, full-building tenant made this an outstanding opportunity in a market that has few strong industrial investment opportunities right now.”

That long-term tenant Merin references is Pearson Education, the higher education book division of the London-based Pearson PLC, which signed a 20-year lease in 2001 while the asset was still under construction on a spec basis. The New York-based Rockefeller Group Development started work on the asset within its Rockefeller Group Foreign-Trade Zone at Exit 8A of the New Jersey Turnpike in 2001 and delivered it for Pearson’s occupancy in the fall of 2002.

“The Exit 8A market is among the most sought-after markets on the East Coast,” C&W’s Gabriel says. “It’s within a day’s drive of almost a quarter of the nation’s population.”

Shortly after the building was completed, Rock-Cranbury LLC, an affiliate of Rockefeller Group Development Corp., sold it to StratREAL, a London-based real estate investment and finance advisory firm, for just under $67.8 million. That earlier sale price equated to about $76.50 per sf, and according to information released by StratREAL, the deal had a cap rate of 8.25%. Officials of both StratREAL and First Industrial did not respond to a request for comment by deadline.<P.Pearson Education, which has its US headquarters in Upper Saddle River, uses the building for warehouse/distribution purposes, and the asset also contains a two-level office component. Rockefeller is continuing to develop the larger Foreign-Trade Zone 8A business park around it, a 150-acre campus that has some two million sf of build-to-suit capabilities.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE 2020Event

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.