Terreno Realty Sells New Jersey Industrial Asset

7777 West Side Ave. Image courtesy of CommercialEdge

Terreno Realty Corp. has sold a 127,000-square-foot industrial property in North Bergen, N.J. The Class B asset traded for $25.5 million. The distribution facility last changed hands in 2017 for $14 million, when Terreno acquired the building from DermaRite, a producer of medical supplies, in a sale-leaseback deal, CommercialEdge data shows.

The Class B, 4-acre property originally built in 1967 underwent cosmetic renovation in 2012. The single-story building features 20-foot clear heights, insulated ceilings, HVAC climate control, loading doors, dock leveler and bumpers, exhaust fans and make-up air units and offers 70 parking spaces at a ratio of 0.55 spaces per 1,000 square feet. The facility continues to be fully leased by DermaRite.

The property is located in an Opportunity Zone, at 7777 West Side Ave., 8 miles from Jersey City and 10 miles from New York City, and has access to Interstate 95. Neighbors in the area include The Home Depot, Lowe’s Home Improvement, Walmart, Prestige Corp., Western Carriers and Bergen Logistics, among others.

Terreno Realty owns a portfolio of 198 industrial properties, a total of 16.8 million square feet, according to CommercialEdge data. The company has an industrial footprint of 2 million square feet in New Jersey with 33 facilities under its ownership.

High prices for New Jersey industrial assets

A recent CommercialEdge report shows that as of March, New Jersey registered $354 million in transactions year-to-date, at an average price of $219.46 per square foot, among the highest prices in the first quarter, preceded by the Bay Area ($490), Los Angeles ($509), Orange County ($302) and the Inland Empire ($252).

Earlier this year, Hines acquired Newark Distribution Center, a three-property industrial portfolio in Newark, N.J., for $127 million, while Faropoint expanded its footprint in the market with the purchase of a 151,000-square-foot property in Branchburg, N.J., occupied by Marcolin U.S.A.