PARSIPPANY — Cushman & Wakefield professionals from four Cushman & Wakefield service lines — Investment Sales, Finance, Leasing and Asset Management — worked in unison to structure the recent sale/leaseback of PNY Technologies’ Global Headquarters at 100 Jefferson Road.
A joint venture of Turnbridge Equities, a New York City-based, privately held full-service real estate investment and development firm, and Harbor Group International, LLC (HGI), purchased the 540,103-square-foot property from PNY Technologies.
PNY Technologies leased back approximately 25 percent of the building on a long-term basis, leaving 400,000 square feet of industrial space for Turnbridge Equities to rent. This includes 200,000 square feet of 38-foot clear height, high-cube space – a distinguishing attribute in the local market. Located at the intersection of interstates 80 and 287, 100 Jefferson Road sits on nearly 36 acres just minutes from routes 10, 46 and 202, and the Morristown CBD.
Members of Cushman & Wakefield’s New Jersey capital markets team – including Gary Gabriel, Kyle Schmidt, Andrew Merin, David Bernhaut, Brian Whitmer and Ryan Larkin – represented the seller and procured the buyer in the transaction. John Alascio, Sridhar Vankayala, Mark Ehlinger, Noble Carpenter III and Zachary Kraft from Cushman & Wakefield’s Equity Debt & Structured Finance group arranged acquisition financing. Additional support was provided by New Jersey industrial leasing experts Jason Goldman and Andrew Siemsen, and property management specialists Mike Nevins, Sam Collison, Cliff Mortara and Mike Baldino.
“Turnbridge was drawn by the property’s location and functionality, and jumped on the lease-up opportunity and chance to create a new industrial offering in one of the country’s most sought-after distribution markets,” Gabriel noted. “This organization has a long track record of successful investments, and the depth of its expertise and professionalism was clear in the 100 Jefferson Road transaction from start to finish.”
PNY Technologies spent many years and a considerable amount of capital improving the building after purchasing it from Pfizer. The property’s location – 30 minutes from New York City, Newark Liberty International Airport, and the Port of NY/NJ – also contributed to strong interest among investors and users. “The quality of this asset and strong institutional sponsorship led to a competitive bidding process and excellent terms put forth by lender Granite Point Mortgage Trust, Inc.,” Alascio said. “Ultimately, Turnbridge was able to take advantage of a great opportunity in a market offering outstanding industrial fundamentals.”
Turnbridge and HGI immediately commenced a $4.5 million capital improvement program that will introduce Class A warehouse space in an attractive, mixed-use campus environment. The project – for which Cushman & Wakefield Asset Services is providing both property management and construction management services – will include new parking and loading areas, new office space and building entrances and new mechanical systems, among other upgrades. Cushman & Wakefield’s Jason Goldman and Andrew Siemsen have been retained as leasing agents for 100 Jefferson Road and are representing Turnbridge and HGI in leasing the vacant space.
“Turnbridge is creating a one-of-a-kind opportunity in the immediate market,” Siemsen commented. “This building represents one of the largest warehouse/distribution availabilities in the Northern New Jersey market, offering accessibility to more than 11 million people within a one-hour drive, making it ideal for last-mile distribution.” With a responsive, established ownership and the promise of modern functionality, it is well positioned for leasing success.”
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more click here.
