Developers break ground on massive New Jersey logistics center
Vertical construction began last week on the 4.1 million-square-foot Linden Logistics Center in Union County.
In the same month that the Blackstone Group made a nearly $19 billion bet on the future of U.S. industrial real estate, a group of developers and brokers gathered on June 21 in northern New Jersey for a ground breaking ceremony on a 350-acre site that will become a state-of-the-art logistics park.
Vertical construction on the 4.1 million-square-foot Linden Logistics Center in Union County began last week, NJBIZ first reported. When completed, the development will have eight warehouses adjacent to the New Jersey Turnpike and 10 miles from the Port of New York and New Jersey, the latter of which is poised to become the second-busiest port in the country, according to GlobeSt.
A joint venture between Bedminster-based Advance Realty Investors, East Brunswick-based Greek Development and Newark-based PGIM Real Estate, an affiliate of Prudential Financial, is behind the massive project. CBRE Group will serve as leasing agent for the property, which is eligible for a 30-year payment in lieu of taxes (PILOT) from the City of Linden. The entire project should be completed by late 2020, right around when deliveries are set to begin.
RE-NJ reported that the former brownfield site was once home to conglomerates American Cyanamid and DuPont, as well as manufacturing firm GAF Materials. For at least the past 15 years, however, the current Linden Logistics Center site has sat vacant. Advance CEO Peter Cocoziello said in prepared remarks that his firm was proud to be working on the largest industrial project in its 40-year history, which he claimed will attract “the kind of 21st century employers who will create new jobs” for the region.
CBRE research shows that the average asking rent in the Linden and Elizabeth submarket reached $6.97 per-square-foot during the first quarter of 2019. The average asking sale rate in the submarket is $84.79 per square foot, per CBRE data.
New Jersey property records reveal that a limited liability company associated with Greek Development purchased and amassed the properties making up the site between March and October of last year. The Real Deal reported earlier this year on New Jersey’s hot market for industrial properties, one that has remained robust in recent months.
In mid-June, developers Forsgate Industrial Partners and Russo Development finalized their $42.5 million acquisition of a 718-acre former Bergen County landfill that will be turned into 3 million square feet of industrial space.