Acquisition of $70M New Jersey Industrial Property

MCB Real Estate, an institutional commercial real estate investment management firm with nationwide holdings, announced today the $69.9 million purchase of a vacant 368,000-square-foot industrial property located at 400 Fairfield Rd. in Howell Township, N.J. A full building lease was signed at closing with a Third-Party Logistics (3PL) company with operations in California and New Jersey.

Completed in just three weeks, the success of this transaction is a testament to the MCB team’s efficient execution capabilities, extensive list of national relationships and unmatched knowledge of the Tri-State commercial market.

“Demand for quality industrial product remains strong despite headwinds in capital markets,” says MCB Principal & Chief Investment Officer Mike Trail. “We are still seeing opportunities to create value, even in stable mature markets like Northern NJ. Acquiring vacant buildings with a tenant in tow is a tried-and-true MCB value creation strategy.”

The building’s tenant also found the location to be extremely attractive. Although only 20 minutes from I-95, the 16-mile distance means this warehouse’s $190 per square foot (PSF) is significantly lower than similar properties immediately near the interstate, which are valued at over $200 PSF. The New York City suburb of Howell, N.J. continues to grow and with time, MCB is confident the value of the building will rise accordingly.

The U.S is home to the world’s largest 3PL market and as of 2023, the nation’s 3PL industry generated nearly $300 billion. Experts predict the industry will continue to grow, adding another $120 billion in revenue by 2028.

The acquisition in New Jersey is another in a series of successes by MCB’s industrial team, which now has 2.7 million square-feet under management. Recent transactions include a 1.2 million-square-foot lease by tenant The Webstaurant Store at the firm’s newly-built 195-acre Currwood Logistics Center in Hagerstown, Md., a joint venture with Artemis Real Estate for the 859,900-square-foot Tower Logistics Center in Aberdeen, Md., and the $60 million redevelopment of Nabisco Plaza in Philadelphia, which won the 2023 CoStar Impact Award, and is now leased by Topgolf.