Turnbridge Lands Tenant at New Jersey Property
The owner recently paid $92 million for this industrial campus.
Turnbridge Equities has signed a long-term industrial lease with TWTH Express for 255,069 square feet at 169 Pulaski St. in Bayonne, N.J. This will be the tenant’s newest warehouse and distribution facility. Russell Verducci of NAI Global represented the owner, while Chris Okada of Okada & Co. and Emanuel Westfried of Two Bins Capital negotiated on behalf of the tenant.
The leased space comprises a portion of the property’s larger warehouse and had been occupied by Waitex Global as part of a sale-leaseback agreement. Turnbridge had acquired the property from Waitex, in a $92 million deal that closed in April, and is currently underway on a $12 million renovation and repositioning program for the Class B complex.
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The overall property consists of three buildings totaling 519,129 square feet, currently 87 percent occupied, plus an industrial outdoor storage space of about 100,000 square feet, Luke Peterson, a senior associate with Turnbridge, told Commercial Property Executive.
The industrial campus, dubbed Bayonne Distribution Center, occupies nearly 18 acres at the intersection of Interstate 78 and Route 440. Its location is less than 1 mile from Port Bayonne and Port Newark.
TWTH will occupy space at a 433,204-square-foot, two-story warehouse featuring 28 loading docks and ceiling heights ranging from 14 to 26 feet. The other two buildings of the complex measure 67,177 square feet and 18,748 square feet, respectively.
In a prepared statement, Ryan Nelson, managing principal of Turnbridge Equities, noted that this was the third major lease arranged in the company’s New York–area properties in the last few weeks.
Cautious owners restrain rental rates
Industrial leasing activity in New Jersey hit 10.6 million square feet in the second quarter, driven mostly by a spate of large transactions, specifically five deals for new Class A space, each for 400,000 square feet or more, according to a recent report from Cushman & Wakefield.
The report remarked, “Despite improving market fundamentals, some landlords continue to prioritize occupancy over maximizing rents, leading to asking rents being 4.3 percent off their peak and increased concessions being offered.”
Meanwhile, the construction pipeline has hit a five-year low of only about 9.6 million square feet. One of the underway projects, a two-building development in New Brunswick, N.J., is slated for completion in 2026.
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