An industrial portfolio at 616 and 618 Corporate Way and 711 Executive Blvd. in Valley Cottage has been sold to Lincoln Equities and PCCP LLC for $53.5 million.
Lincoln Equities is a commercial and residential real estate owner and developer that operates in the tristate area and Europe. PCCP is a real estate finance and investment management firm with offices in New York, San Francisco, Atlanta and Los Angeles.
The property was sold by Sasson Real Estate Group and Garelick Holdco LLC. JLL Capital Markets, who marketed it, announced the closing of the sale on April 19.
The light industrial properties are fully leased to 24 tenants.The properties total 260,755 square feet, and come a with a 23-acre parcel that can be used for future development.
JLL highlighted the strategic location of the property, near major highways including Route 9W, Route 202, the Palisades Interstate Parkway and Interstate 287 and the Mario M. Cuomo Bridge.
“Demand for industrial product today continues to run at an all-time high and is further evidenced by the depth of the buyer pool for these buildings,” Jose Cruz, senior managing director at JLL, said in a statement. “We are seeing it in every industrial sale offering our team markets. Also, investors were heavily focused on the development potential of the land parcel.”
The property is also close to northern New Jersey, which has a large industrial market. A Newmark report noted a record-breaking first quarter of 2021 for the northern New Jersey industrial market, attributed to the rising need for space to fulfill orders for a growing ecommerce market.
“A total of 11.1 million square feet of lease transactions closed during the first three months of 2021, the most ever on record,” according to the Newmark report.
“Tenant demand helped push the average asking rent to a new high of $9.79/square foot, an increase of 7.1% from one year ago. The market recorded more than 3 million square feet of net absorption, outpacing deliveries by 1.4 million square feet, as vacancy declined from 4.3% to 4.1%.”
