Crow Holdings Industrial, the industrial development company of Crow Holdings, has acquired a 126-acre property in Carteret, New Jersey from Rahway Arch Properties with plans to break ground this summer on a three-building, 1.2-million-square-foot speculative development.
Crow Holdings tapped Stan Danzig, Jules Nissim and Kim Bach of Cushman and Wakefield to lease the space.
Located in Northern New Jersey, one of the country’s most land-constrained markets for industrial development, the property will bring the region much-needed logistics space in a prime spot just off of Exit 12 of the New Jersey Turnpike. With unprecedented demand for distribution centers in recent years, industrial vacancies have consistently hovered near zero, as occupiers have absorbed new developments as quickly as they have been built.
“With e-commerce gaining steam over the past few years, my administration has long recognized the importance of industrial construction in our town’s economic redevelopment initiatives, and it’s exciting to see a national developer like Crow Holdings begin a project of this magnitude,” said Carteret Mayor Daniel J. Reiman.
“Besides creating ratables, these industrial facilities will bring hundreds of union construction jobs and hundreds of full time permanent jobs to Carteret residents, all of which will benefit the borough more broadly. While this once abandoned site has been underutilized for many years, it’s exciting to see it begin the next chapter in its story as an economic engine that serves the needs of Carteret and surrounding areas.”
The property spent much of the 20th century operating as a historic industrial location for several manufacturing companies. Over the past decade, the property underwent environmental remediation through the leadership of Rahway Arch, ultimately receiving full approvals from New Jersey’s Department of Environmental Protection.
“The redevelopment of this site is good for the town as a tax ratable and because it brings more jobs,” said Rinaldo D’Argenio, Rahway Arch’s managing member. “Crow Holdings’ proven ability to deliver and close on complicated transactions is further evidenced by its acquisition of the property.”
“Several years into the transformation of the industrial real estate industry, developable land has become scarce in this region, and a parcel of this size on the Turnpike presents a very compelling opportunity,” said Clark Machemer, Senior Managing Director of Crow Holdings Industrial.
“With access to a strong labor pool and Carteret’s pro-business climate, the strategic location of this property makes it an unmatched spot for 21st century industrial development. We’re anticipating kicking off construction very soon, with the goal of delivering the first building in the first half of 2022.”
The three buildings will range in size from 335,000 to 480,000 square feet. The buildings will each feature 40’ clear heights, and — in the aggregate — will include 140 trailer parking spots, 174 dock doors and six drive-in ramps.
For Crow Holdings Industrial, this development comes months after the company’s first marquee property sale in the Northeast, the $164 million disposition of 50 Veronica Avenue, a newly built 925,000 s/f property in Franklin Township, NJ, which is fully leased to LG Electronics USA. Coming just two years after Crow Holdings commenced industrial development operations in the region, the transaction — one of the largest single-asset industrial property sales in the country during the pandemic — immediately established Crow Holdings as one of the most capable developers in the Northeast.
Over the past 22 years, Crow Holdings operating companies have developed or acquired more than 170 industrial properties with an additional 54 currently in development, representing over 115 million square feet of industrial space across the U.S.