Taconic enters industrial market with Nuveen joint venture

Developers paid $55M for 296K sf asset in Morristown, NJ

Tri-State /
Dec.December 23, 2021 12:45 PM

From left: Paul Pariser, co-CEO, Taconic Partners, and Mike Sales, CEO, Nuveen Real Estate, in front of 1 Cory Road in Morristown, NJ (Getty Images, Nuveen Real Estate, LoopNet)

Taconic Partners and Nuveen Real Estate are at it again. This time, the duo marked Taconic’s entry into the industrial market.

The partners acquired a 296,000-square-foot asset in Morristown, New Jersey, for $55 million, the Commercial Observer reported. The seller of the property at 1 Cory Road was not disclosed.

The property sits on a 17.9-acre site and features a rooftop solar system and 6.5-acre parking area. According to the Observer, the facility was built in 1986 and is 100 percent leased to different third-party logistics companies.

The sale was arranged by a team from Cushman & Wakefield.

Taconic and Nuveen have a plethora of experience working together on development deals.

Earlier this month, the developers (along with Flatiron Equities) acquired an 87,000-square-foot building at 309 East 94th Street from the Karten family for $70 million in cash. The future of the property is unclear, but general and medical office redevelopments are among the considerations.

In August, the partners landed a $125 million refinancing package for their renovated Union Square office building at 817 Broadway. Ares Commercial Real Estate and Criterion Real Estate Capital provided the debt on the landmarked building.

The heat of the industrial real estate sector is warming the hearts of many in New Jersey during the holiday season, as deals continue with breathless abandon.

Industrial investment firm Faropoint earlier this week picked up a 10-building portfolio from Kushner Companies for $132.5 million. The portfolio spans more than 654,000 square feet and is a combined 98 percent leased.

The deal came days after EverWest Realty Partners acquired a three-building portfolio in Moonachie for nearly $66 million. The 190,000-square-foot portfolio is located in the Meadowlands, an infill location in high demand.

High demand has essentially blocked off the leasing of warehouse space in the state. A report from JLL in November revealed the vacancy rate of Class A properties in the state to be a measly 0.2 percent.

[CO] — Holden Walter-Warner





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