Lincoln Equities Group LLC (LEG) and its partner, Real Capital Solutions, announced today that the firm has sold a 228-acre industrial property at 171 River Road in Piscataway to the Rockefeller Group for $57 million.
Formerly a brownfield site, the fully remediated property off Interstate 287 is fully entitled to build 2.4 million square feet of space for industrial distribution and light manufacturing development. The Rockefeller Group will break ground on two new buildings later this summer with an overall project cost between $225 and $250 million.
It plans to create a 2.2-million-square-foot, state-of-the-art Rockefeller Group Logistics Center and has selected Cushman & Wakefield as the exclusive marketing agent. It will comprise six buildings, representing a combination of speculative and build-to-suit opportunities. The Cushman & Wakefield team of Jules Nissim, Stan Danzig and Marc Petrella will manage the assignment.
“We’re thrilled to move forward with the Rockefeller Group Logistics Center on one of the largest remaining developable sites in New Jersey at a time when demand for well-located and well-designed industrial product in the state is so strong,” said Clark Machemer, senior vice president and regional development officer for Rockefeller Group’s New Jersey/Pennsylvania operations. “When complete, the complex will offer prospective users a level of flexibility that’s unparalleled in New Jersey.”
Rockefeller Group’s plans for the development are propelled by the vigorous demand for modern, top-quality warehouse space in New Jersey, specifically within the I-287 industrial corridor. The Rockefeller Group Logistics Center will feature properties ranging in size from 200,000 to more than 800,000 s/ft, accommodating users with a variety of size and infrastructure requirements. Flexible transaction options will allow for future users to lease or own industrial space.
Additional notable features and amenities will include excess trailer parking for each individual building, on-site rail service, two means of ingress and egress to the site, and an in-place 30-year PILOT agreement.
Since purchasing 171 River Road in 2014, Lincoln Equities Group and Real Capital Solutions worked closely with the Township of Piscataway to redevelop this property, which had been vacant since the 1960’s. LEG developed a site plan and secured development rights to construct up to eight buildings, as well as new roads, infrastructure, and landscaping.
“This property closes at an important time for the state’s I-287 corridor, which is now seeing significant interest from industrial developers due to its proximity to Newark’s airport, port and rail stations,” said Joel Bergstein, president, Lincoln Equities Group. “We purchased the site at 171 River Road three years ago when most developers were focusing on the I-95 corridor, and we’re fortunate to anticipate where the state’s next wave of development would take place.”
171 River Road is located one mile from Interstate 287 (with direct access off both Exits 8 and 9), close to Port Newark/Elizabeth, and is serviceable by “F Plate” rail cars. The property is a former brownfield site that was fully remediated by Union Carbide after the shutdown of a Bakelite plastics manufacturing plant in 1939.
“The development of 171 River Road is a great example of what happens when government and private business come together with a common goal,” said Brian C. Wahler, Mayor of Piscataway Township. “Thanks to our collaboration with Lincoln Equities Group, this former brownfield site – which sat empty for decades – is now positioned to attract businesses and jobs into our community, adding to our tax base.”
The Township of Piscataway offered a Payment in Lieu of Taxes (PILOT) as an incentive to businesses and committed to completely reconstructing Baekeland Avenue, which provides access to the site from Exit 8.
“We were glad to be able to partner with Lincoln Equities, the team there is a great partner that has the local operating expertise we value,” said Marcel Arsenault, CEO of Real Capital Solutions. “We are creative entrepreneurial money with a fortress balance sheet, which allows us to work with partners like Lincoln Equities to maximize results and be a one-stop-shop for debt and equity.”
David Bernhaut of Cushman and Wakefield represented the sellers.
Lincoln Equities Group and Real Capital Solutions are actively seeking new partnerships for future redevelopment and value-add projects.