A 200,000-square-foot warehouse on almost 28 acres sold for $62 million — more than eight times what it sold for five years ago.
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Denver-based EverWest Real Estate Investors closed on the property in an all-cash deal on May 3. The $62-million sale price works out to about $288 per square foot. It’s unclear whether the transaction includes anything beyond the property, such as business or equipment. Property records indicates “Exchange for other real estate” in the remarks and the deed makes reference to the purchasing using a 1031 exchange, which allows for deferring “recognition of capital gains and related federal income tax liability on the exchange of certain types of property.”
The former API Foils building at 329 New Brunswick Ave. last changed hands in January 2017 for $7.5 million, according to property records, when API Foils sold it to a Brooklyn-based LLC. The 26.4-acre industrial property generated a property tax bill of $222,737 in 2022 from an assessment of $3.146 million. The single-story building was constructed in 1975.
Brokers for the buyer and seller were Isaac Filler, Abie Kassin and Ikey Betesh of Meridian Capital Group, who declined comment citing a Nondisclosure Agreement (NDA). “This unique asset attracted interest from a wide range of institutional investors,” Filler said in a press release. “The insatiable demand for New Jersey industrial assets helped us achieve a record price-per-square-foot on behalf of the seller.”
Brooklyn-based 329 New Brunswick Ave. LLC, owned it with Union County Properties, LLC, a Cranford holding company that had a 20% stake. The previous ownership received final site plan approval from the Planning Board earlier this year. It was the third time coming before the Planning Board. First were minor improvements, including fencing, improving lighting and general cleanup. API Foils created some disturbance in nearby wetlands on the property, which was cleaned up and trees planted, according to Planning Board testimony. There also was site contamination that was signed off on by the U.S. of Environmental Protection Agency (EPA).
In November 2018, testimony before the Planning Board indicated that the property was previously subject to environmental clean up, including the removal of about 228,000 cubic yards of fill and other debris. That followed Planning Board approval in February 2019 for preliminary and major site plan approval.
In August 2021, the Planning Board granted preliminary site major site plan approval with bulk “c” variances to construct a new 76,250-square-foot warehouse, including 2,767 square feet of “office space and related improvements” as well as nine loading docks and 53 parking spaces. The existing warehouse was supported by 204 off-street parking spaces and loading area.
Following a joint venture announcement in late 2021, leasing global real estate investor, asset manager and business builder Oxford Properties Group and leading real estate investment management firm EverWest Real Estate Investors recently closed on $54 million in industrial acquisitions spanning four properties within high-demand central New Jersey locations. The acquisitions follow the joint venture’s objective to acquire and develop approximately $1 billion (gross asset value) of infill, light industrial properties, focusing on core-plus, value-add product in major U.S. growth industrial markets.
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