GLP Capital Pays $54M for Logistics Facility

GLP Capital Partners has purchased 34 Engelhard Drive in Monroe Township, N.J. Image courtesy of CBRE

GLP Capital Partners has purchased 34 Engelhard Drive, a 203,000-square-foot distribution center located in Monroe Township, N.J.

Clarion Partners, the facility’s previous owner, sold the property for $53.8 million, and was represented by a CBRE team led by Vice Chairman Brian Fiumara. Following the sale, the brokerage firm will also handle the property’s leasing.

34 Engelhard Drive was built in 1980 on a 12-acre site. The Class B facility features a 110-foot truck court, alongside rail-served mechanical loading doors with dock levelers and bumpers. According to CommercialEdge information, the facility’s sole tenant is plastic packaging manufacturer Berry Global.

The building’s immediate neighbors include distribution centers operated by the likes of Prologis and L&R Distribution, as well as food storage and fabrication facilities. According to data from Cushman & Wakefield, Monroe Township lies within New Jersey’s largest industrial market by square footage—Middlesex County—which has more than 223 million square feet in its inventory.

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An on-ramp to the Interstate 95 sits 1.5 miles north, placing the facility near the midpoint of the drive from New York City to Philadelphia, cities located within 40 and 45 miles, respectively. Further along the Acela corridor, Boston and Washington, D.C., lie within a day’s drive in either direction.

The Garden State’s strong industrial market

In many metrics, New Jersey is the strongest-performing industrial market in the Northeast. According to data from an August CommercialEdge report, the Garden State recorded nearly $1.2 billion in sales year-to-date, and has the highest average rent among regional markets. Its pipeline of 9 million square feet comes second to Philadelphia, and eclipses Boston and Bridgeport, Conn.

On the investment front, Thor Equities recently closed on a $26.6 million refinancing loan for a 220,000-square-foot property in Bogota, N.J. Around that same time earlier this summer, Bridge Industrial purchased a 115,000-square-foot facility in Linden, N.J., located less than 20 miles from New York City.

Meanwhile, South Jersey is the site of the Garden State Logistics Center, a 1.7 million-square-foot industrial complex being jointly developed by PGIM Real Estate and CTR Partners.