Brookfield Asset Management bought an industrial and rail facility in Northern New Jersey from CSX for $67.3 million as the investment giant continues its spree of tri-state industrial acquisitions.
Brookfield bought a 9.3-acre site at 1100 Newark Turnpike that includes a 58,500-square-foot industrial facility. The property sits just off the New Jersey Turnpike and has 54 dock doors, 12 rail doors and three rail tracks.
The site was used solely by CSX, which has a duopoly with Norfolk Southern on freight rail lines in the East Coast. Brookfield did not reveal its plans for the site, but said it likes owning warehouses that make it easy to get stuff in and out to population centers nearby.
“Despite a challenging investment environment, we have long-term conviction in high-throughput warehousing with unique proximity to urban nodes and transportation infrastructure,” Brookfield Real Estate executive Jonah Mermelstein said in a statement.
The unit of the investment giant is looking for similar opportunities across the country, Mermelstein added.
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Isaac Setton and Bunny Escava brokered the sale. They declined to comment.
KSR’s Isaac Setton and Bunny Escava (KSR)
Brookfield has been an active buyer of industrial real estate in New York City and the tri-state area. Last year, it paid $45 million for a 85,000-square-foot property leased to Amazon Fresh in Brooklyn’s Red Hook neighborhood.
Brookfield also acquired a two-building industrial complex in Clifton, New Jersey, for $25.5 million last year.
Industrial real estate has been among the most sought-after asset classes in recent years as institutional investors rushed to buy last-mile warehouses for lease to Amazon and other retailers.
But the industrial sector appears to be slowing down as Amazon pulls back and higher interest rates lead to higher financing costs. Amazon, the driving force behind warehouse demand, plans to sublet at least 10 million square feet of space it had planned to occupy.