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PE firm Marcus Partners buys South Plainfield warehouses for $37M

Strong demand in North Jersey industrial market continues to attract investors

Marcus Partners CEO Paul Marcus and 18-20 Harmich Road in South Plainfield, New Jersey (Getty Images, Lee & Associates, Marcus Partners)
Marcus Partners CEO Paul Marcus and 18-20 Harmich Road in South Plainfield, New Jersey (Getty Images, Lee & Associates, Marcus Partners)

Another out-of-state investor is solidifying its piece of North Jersey’s hot industrial market.

Boston-based private equity firm Marcus Partners acquired a two-warehouse, 200,000-square-foot property in South Plainfield for $36.5 million.

The 17-acre site is at 18-20 Harmich Road in the Middlesex County town, close to Interstate 287 and the New Jersey Turnpike and about 23 miles from Port Newark-Elizabeth Marine Terminal, a major shipping port.

The off-market deal was brokered by Lee & Associates’ Rick Marchisio, Crista Governara and Drew Maffey.

The purchase comes weeks after the private equity firm said it closed a $650 million real estate fund. Its portfolio primarily consists of industrial, life science and multifamily assets in the Boston, New York and Washington, D.C. metro areas.

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Marcus Partners’ other New Jersey holdings include a nearly 200,000-square-foot industrial property in Paterson and a similarly sized life sciences building in Rockleigh.

Across the river in Manhattan, the firm owns a pair of 11-story office buildings at 10 and 12 East 33rd Street in Midtown, which it bought from Dalan Management for $54.5 million in 2018.

The firm also partnered with Crow Holdings last year to break ground on their first multifamily project in New York. The two-building, 450-unit luxury residence in Harrison, Westchester County, is expected to be completed in 2024.

Marcus Partners’ deal comes days after another Boston-based private equity firm, Longpoint Realty Partners, recently bought a 100,000-square-foot industrial property in Clifton, New Jersey, for $18.5 million. That deal was also brokered by Lee & Associates.

Touting close proximity to New York City and access to multiple ports and highways, Northern New Jersey is one of the country’s tightest industrial markets. Vacancies fell to a record-low 2.4 percent in the second quarter, according to Savills, while the average asking rent was up 47 percent over the same period last year.

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