PGIM Real Estate has paid $275 million to Bridge Development Partners for a 2.2 million-square-foot industrial portfolio in Phillipsburg, N.J. The four facilities were completed earlier this year on the site that housed a former Ingersoll Rand facility. CBRE National Partners’ Brian Fiumara negotiated the deal on behalf of the seller.
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The first phase of Bridge Point 78 is located in the Lehigh Valley industrial market and encompasses buildings ranging from 175,055 square feet to 975,761 square feet. The facilities include clear ceiling heights ranging from 36 to 40 feet, as well as single- and cross-docked loading configurations. They are situated less than 3 miles from Interstate 78, providing access to both Newark, N.J., and New York City. The seller is working on the second phase of the project, with plans to deliver two additional facilities totaling some 1.7 million square feet.
Last October, UNIQLO signed an almost 1 million-square-foot lease at Bridge Point 78, marking the tenant’s largest lease to date. Additionally, Bridge also secured a 419,460-square-foot lease with Mark Anthony Brands.
Busy times for PGIM
The deal comes at a time when the industrial market has seen a rapid growth thanks to the outstanding demand coming from e-commerce activity amid the COVID-19 pandemic. As a result, the level of investment in industrial real estate has not been as affected as investments in more at-risk commercial real estate assets.
Last month, PGIM picked up a multi-state, 30-property portfolio valued at about $700 million. The facilities are located in Los Angeles, the Greater Chicago area, Seattle, Dallas-Fort Worth and Louisville, Ky. At the time of sale, PGIM’s portfolio consisted of 45 million square feet, after the company also purchased a 4.7 million-square-foot industrial portfolio the previous month. In one of the country’s largest portfolio deals since the onset of the pandemic, PGIM acquired 15 facilities from funds managed by Crow Holdings Capital for $425 million.