Trammell Crow Co. and its joint venture partner CBRE Investment Management, on behalf of a fund it manages, have acquired 74 acres in Sayreville, N.J., from Hercules LLC, an affiliate of Ashland LLC, and plan to build Arsenal Trade Center, a 1.1 million-square-foot industrial development. The sale price was not disclosed.
Construction is set to begin this summer and be completed by late 2023. The project, which is located 4 miles east of the New Jersey Turnpike, will have three buildings, all rear-loaded. The buildings will have 284,341 square feet, 341,833 square feet and 451,602 square feet of space. Each building will feature above standard car and trailer parking, 40-foot clear heights, full site circulation and multiple points of ingress and egress.
Located at 50 South Minisink Road, the project has proximity to the region’s major highways including the New Jersey Turnpike and Garden State Parkway, allowing for efficient access throughout the New York/New Jersey metro area. The site is within a 30-minute drive of 2 million people, an hour’s drive of New York City and a day’s drive of more than one-third of the U.S. population.
The submarket has a logistics space availability rate of 2.4 percent as of the first quarter of 2022, which is near historic lows for the area, according to CBRE Investment Management research. Andrew Mele, managing director of TCC’s Northeast Metro office, and Mary Lang, head of Americas direct logistics strategies for CBRE Investment Management, said in a prepared statement the development provides an opportunity to meet a significant need for Class A logistics space in the Central and Northern New Jersey market.
QuadReal provided construction financing for Arsenal Trade Center. Ben Shapiro of CBRE represented the seller as agent in the marketing and sale of the property. KSS Architects is designing the project and RC Anderson is the general contractor. The development team is seeking LEED Silver certification.
Shapiro said in a prepared statement the sale of the land and planned project represent a team effort between the buyer and seller along with the Borough of Sayreville and Sayreville Economic and Redevelopment Agency to redevelop an underutilized property.
Other logistics deals
Also this month, TCC and CBRE Investment Management, on behalf of one of its funds, sold Butterfield 5 Technology Park in Morgan Hill, Calif., to Invesco Real Estate for an undisclosed amount. The five-building, 410,100-square-foot Class A industrial park was completed earlier this year and can accommodate industrial, manufacturing and life science tenants. Located in Silicon Valley, the site is in southern Santa Clara County on a 24-acre parcel west of Highway 101 and near Morgan Hill’s central business district.
In March, TCC started construction on its first industrial development in Idaho, where it plans to build three rear-load buildings on the 25-acre site in Nampa, Idaho. The project is expected to deliver by the fourth quarter and total 362,000 square feet of space. A month earlier, TCC partnered with Clarion Partners to start the final 308,484-square-foot phase of a nearly 1 million-square-foot industrial park in Austin, Texas. Construction is slated to be completed later this year.