Cushman & Wakefield Arranges $83 Million Sale of Barnes & Noble Distribution Center
MONROE TWP., N.J., Feb. 11, 2013 - Commercial real estate services firm Cushman & Wakefield, Inc. has orchestrated the $83 million sale of bookseller Barnes & Noble's primary distribution center, a class A industrial facility totaling 1,145,000 square feet in Monroe Twp., N.J. The seller, a pension fund advisory firm, was represented by Andrew Merin, Gary Gabriel, David Bernhaut and Brian Whitmer of Cushman & Wakefield's Metropolitan Area Capital Markets Group. The buyer, CenterPoint Properties, was also procured by Cushman & Wakefield.
"This was a unique opportunity that drew solid interest," said Gabriel. "The transaction evidences the fact that investors are willing to accept large single-asset/tenant exposure to industrial in New Jersey. While the typical "one-off" industrial sale is in the $8-25 million range, it is far more efficient to take down a single asset of this size to increase allocations to the sector.
"The result, in this instance, is the largest leased industrial property sale in New Jersey, in at least a dozen years," he said.
Situated on 73 acres at Exit 8A of the New Jersey Turnpike (I-95), the Barnes & Noble Distribution Center was constructed in 2005. Located approximately 35 minutes from the Port of Newark/Elizabeth, the property can accommodate an expansion of up to 100,800 square feet.
"The tenant, whose lease runs through 2020, invested approximately $100 million into the building," Merin added. "With its high ceilings, amenities and infrastructure, it is fully configured for e-commerce fulfillment, which is what the world is looking for today."
From the site, Barnes & Noble distributes books, electronics, toys and games to more than 700 stores nationwide, and to e-commerce customers internationally. Fully air-conditioned, it features 39-foot clear ceilings, 115 loading doors, a full-service cafeteria, and a fitness center for the 800 on-site employees.