West Coast industrial investor Terreno Realty Corporation has acquired a 5.4-acre land parcel just off the New Jersey Turnpike in Kearny for $26.3 million.
Public records show that the site at 97 Third Street last traded for just $2.57 million in 2016.
“Finding suitable investment properties in the northern New Jersey and New York City area only grows more difficult by the day,” said NAI James E. Hanson’s Kenneth Lundberg, who represented Terrano along with Patrick Lennon and Lorenzo Lambiase.
“We are pleased to be able to leverage our expertise in this region to help Terreno enhance its portfolio.”
The site, adjacent to Exit 15E of the New Jersey Turnpike, is currently 51 percent leased to two tenants involved in the transportation and haulage sector. It sits five miles from Port Newark and offers accessibility to one of the most competitive industrial markets on the East Coast.
The acquisition is the latest New Jersey addition in Terreno’s growing portfolio of industrial real estate assets across six major coastal U.S. markets including the northern New Jersey and New York City market. With this acquisition, Terreno’s portfolio in the northern New Jersey and New York City area now spans 63 buildings and 3,570,180 square feet.
Terreno, in a statement, said the property has an estimated stabilized cap rate 3.1 percent and noted that the total acquisition cost includes the initial purchase price, the effects of marking assumed debt to market, buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization.