By Joshua Burd
An investment team has acquired a 40,000-square-foot industrial building in Bergenfield, along with an adjacent apartment building that provides a potential redevelopment opportunity.
The partnership of Diversified Properties and The Hampshire Cos. paid an undisclosed price for the fully leased, two-story building at 72 North Washington Ave. The off-market deal follows a long-term lease renewal by the building’s lone tenant, Cooper Electric, with Greg Sabato and Tom Consiglio of Resource Realty of Northern New Jersey representing the seller as well as the new ownership team in the respective transactions.
Meantime, Diversified and Hampshire say they’re evaluating redevelopment options for the adjacent multifamily building at 21 West Church St.
“In a market where opportunities to acquire fully leased industrial properties with credit-grade tenants are few and far between, the acquisition of 72 North Washington Avenue stands out,” said Nicholas Minoia, founder and managing principal of Diversified Properties. “Not only does this transaction mark the addition of another high-quality industrial property to our growing northern New Jersey industrial portfolio but the adjacent multifamily component provides unique value-add potential that is hard to find in the current market, particularly in Bergen County.”
The deal marks the firms’ most recent joint venture and their second industrial acquisition in northern New Jersey over the last 12 months, according to a news release. In late 2020, the partners acquired Mars Industrial Park, a five-building, 100,000-square-foot industrial portfolio in Montville, while also recently delivering a 98,000-square-foot CubeSmart self-storage facility to a nearby site in the township.
“Our diversified investment platform enables us to uncover unique real estate investment opportunities and drives results from multiple asset sectors,” said Deborah P. Hanson, executive vice president and principal of The Hampshire Cos. “The industrial and multifamily markets have been resilient to the challenges other asset classes have faced during the pandemic. This acquisition with Diversified Properties will enable both firms to leverage their decades of hands-on experience to drive value at both sites.”