Turnbridge Equities, along with its joint venture partner Harbor Group International, have sold 100 Jefferson Road, a 550,000 s/f industrial property in Parsippany, NJ, for $85.25 million.
JLL worked on behalf of the sellers. Brooklyn-based real estate investment firm JFR Global Investments purchased the asset.
The property was first acquired by the Turnbridge and HGI joint venture in October 2018 for $60.3 million from current tenant PNY Technologies.
“HGI acquired 100 Jefferson as part of our Last Mile Industrial initiative, targeting industrial properties with direct access to key urban markets,” said T. Richard Litton, Jr., President of HGI, “We successfully implemented a $4.2 million capital improvement plan and executed our leasing strategy, adding significant value to the property.”
During their time as owners, the partnership demolished part of the former Pfizer lab facility and completed an HVAC overhaul and substantial interior upgrade.
100 Jefferson Road was only 28 percent occupied when it was purchased by the joint venture but is now nearly 64 percent leased to PNY Technologies and Vitaquest International. PNY Technologies occupies 155,000 s/f and the space serves as its global headquarters; Vitaquest International maintains 200,000 s/f of space and is completing construction of a manufacturing facility for its global vitamin and supplement businesses.
The asset also includes an approximately 200,000 s/f vacant suite that provides added flexibility for the new ownership, as the space can be subdivided to accompany multiple tenants, utilized as expansion space for existing tenants, or further enhanced through the construction of additional loading docks or doors.
“The sale of 100 Jefferson Road completes our business plan and showcases Turnbridge’s successful value-add investment strategy,” said Jason Davis, Managing Director at Turnbridge Equities. “The Northern New Jersey market continues to be attractive to industrial investors because of its ideal location combined with a lack of new warehouse supply and continued strong demand drivers. The buyer recognized this as a unique opportunity to acquire a newly renovated, Class-A asset that offered stable cash flow with significant upside given the remaining vacancy.”
The JLL Capital Markets team representing the seller included Jose Cruz, Jordan Avanzato, Marc Duval Michael Oliver, Kevin O’Hearn and Steve Simonelli.
“We are very pleased with the outcome of this transaction,” Cruz said. “Demand for suburban industrial continues to be very strong and the remaining lease up of this asset gives the buyer significant upside on which to capitalize.”
