LOGAN TOWNSHIP, NJ – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of a brand new 70,000-square-foot refrigerated food storage and distribution building. The facility is triple-net leased to Albert’s Organics/United Natural Food Inc. (UNFI), the largest wholesale distributor of natural, organic and specialty foods in the United States and Canada. The property is situated in a 1,100-acre master-planned business park in Logan Township, N.J., which is part of the Philadelphia MSA. The terms of the sale were not released.
John Glass, a senior vice president investments, and Scott Pertel, an associate, both in Marcus & Millichap’s San Francisco office, represented the seller. The buyer is a publically traded REIT out of New York. Marcus & Millichap vice president Michael Fasano also provided representation.
“The buyer pool we sourced for this asset produced 12 offers,” says Glass, “The building’s quality location in a top-rated industrial market and the competitive bidding environment we created drove the selling price well above the initial asking price.”
“The lease, guaranteed by UNFI, has an initial 15-year term, with two five-year renewal options,” adds Pertel. “The tenant can expand up to an additional 25,000 square feet, adding potential upside for the new owner.”
Completed in 2013, the build-to-suit facility is located within the LogistiCenter business park at 1155 Commence Blvd. in Logan Township, N.J., 12 miles south of Philadelphia. The location offers direct access to Interstate 295, the New Jersey Turnpike, Route 120, Interstate 95 and rail service, making it an ideal place from which to service markets from Washington, D.C. to New York City.
The one-story warehouse features a mezzanine office and ample parking. The foundation is concrete, the framing is tilt up steel and the exterior is concrete and steel siding.
United Natural Foods Inc. supplies 60,000-plus items to 23,000 customers, including independently owned retailers, supernatural chain Whole Foods, and traditional supermarkets. The company offers groceries, supplements, produce, frozen foods and ethnic and kosher food products.
“Demand for refrigerated warehouse space, particularly freezer space, is projected to continue as the growing frozen food industry keeps refrigerated warehouse facilities at or near full capacity,” concludes Glass.