CRG, the real estate development and investment arm of Chicago-based Clayco, announced the sale of two speculative industrial facilities in East Greenwich, New Jersey, for $107.74 million.
The firm sold The Cubes at Huff Lane, a 283,040 square-foot building, and The Cubes at Harmony Road, a 252,750 square-foot building, both located in the East Greenwich Logistics Center about 20 miles southwest of Philadelphia.
The sale to Carson, California-based Watson Land Company was brokered by JLL, which managed the leasing process for both facilities. They were developed by CRG in a joint venture partnership with Pacific Coast Capital Partners, and completed in September 2020.
The Cubes at Harmony Road is located at 191 Harmony Road and is fully leased to a global e-commerce fulfillment company. The second building, located at 100 Huff Lane, is also fully leased. East Greenwich Logistics Center is adjacent to Interstate 295, less than a half mile from the New Jersey Turnpike and less than 20 miles from I-95.
“Each of these buildings was a major success for our clients and capital partners,” said Frank Petkunas, senior vice president, partner and Northeast industrial leader for CRG. “The facilities’ last-mile accessibility to Philadelphia and major freeways gave us a strategic position in the market. As major e-commerce users and logistics users continue to prioritize the Southern New Jersey industrial markets, CRG will continue to establish its footprint here to meet those needs.”
CRG develops its industrial buildings under The Cubes brand, which prioritizes core national markets with access to major population centers and strong local workforces in key logistics corridors. Since 2018, the firm has broken ground on approximately 18 million square feet of The Cubes projects across the country, more than 10 million square feet of which has already been delivered.
“This is the strongest industrial market of our lifetimes and today’s users require best-in-class, next generation facilities to keep pace with that demand,” said Shawn Clark, president of CRG. “That’s the standard we put into each of The Cubes, including these two in East Greenwich. We bring these buildings to life with the most vertically integrated development and investment platform in the country, and each successful sale helps us prove that.”
The two facilities were designed by CRG’s integrated partner Lamar Johnson Collaborative, while its parent company Clayco managed construction. Both warehouses feature 36-foot clear heights and early suppression fast response (ESFR) fire sprinkler systems. The Cubes at Huff Lane features 43 loading doors, 187 parking spaces and 60 trailer stalls, while The Cubes at Harmony Road includes 38 loading doors, 208 parking spaces and 79 trailer stalls.
The sale is the sixth industrial asset disposition for CRG in the past year, which sold NorthPark Distribution Center One in St. Louis on March 16; The Cubes at DuPont in Seattle on Dec. 28, 2020 to Duke Realty; a 1,002,150- square foot e-commerce warehouse to KKR at The Cubes at Bridgeport in Coweta County, Georgia on Sept. 25, 2020; and a 350,000 speculative warehouse in Portland, Oregon to KKR on July 17, 2020.
The JLL Capital Markets team representing the sellers was led by Senior Managing Director John Plower, Director Ryan Cottone and Analyst Zach Maguire, along with Vice Chairman Paul Torosian, Managing Director Dean Torosian and Executive Managing Director Nate Demetsky.
“We saw a tremendous amount of investor interest in this offering due to the high quality of construction, infill location and the in-place cash flow that both leases provide,” Plower said. “Southern New Jersey is a great distribution location, as it provides easy access locally and regionally along I-295 and the New Jersey Turnpike and is just across the river from Philadelphia’s massive population center.”