CLIFTON, NJ — CBRE Group Inc. announced that Jeffrey Dunne, Kevin Welsh, Brian Schulz and Frank Maresca of CBRE’s Institutional Properties along with Michael Hines, Brian Fiumara and Brad Ruppel of CBRE’s National Partners, as well as Bill Waxman of CBRE’s Saddle Brook office, represented Tulfra Realty II, LLC in the $27.3 million sale of 10 Clifton Blvd., which closed in September 2014. In addition, the combined team closed the sale of 200 Clifton Blvd. in January 2015. Both properties are located in Clifton (collectively referred to as the “Portfolio”). The team was also responsible for procuring the buyer, J & L Real Properties, LLC, which was a first time buyer in New Jersey.
The Portfolio is comprised of two multi-tenant industrial buildings totaling 288,469 s/f (10 Clifton – 144,005 s/f and 200 Clifton – 144,464 s/f) which were redeveloped by Tulfra in 2004. The extensive capital improvement program was highlighted by new roofs, HVAC, loading, façade, extensive site work and landscaping. The redevelopment strategy focused on creating attractive curb appeal along with flexibility and functionality of the buildings to target 5,000 to 25,000 s/f tenants.
This strategy resulted in the lease-up from 15% to 100% occupancy in approximately 12 months to a diverse group of tenants that have heavily invested in their infrastructure and benefit from excellent access to a deep low cost labor base. The Portfolio provides stable and secure cash flow with a balanced rollover schedule and contractual rental increases providing increasing yield over the hold period.
Sonny Jumani, president at Tulfra Realty, said: “This asset performed very well for us over our 10-year hold period. We strongly believe in the NJ industrial fundamentals and saw this as an opportunity to redeploy the capital into our value add business and recently acquired 65 Industrial Street South, the former Glaxo building in Clifton, NJ. Situated on 11 acres the single-story headquarters-quality industrial building totals 201,000 s/f. We will be marketing the property for lease or sale to a single tenant and anticipate a great deal of interest in this offering.”
Welsh said: “The sale of 10 & 200 Clifton to a private investment group from the West Coast is a prime example of private capital searching for yield and broadening their investment parameters. J & L Real Properties was highly attracted by New Jersey’s strong industrial fundamentals and the returns provided by this asset class.”