Tuesday, April 21, 2020

Endurance Announces the Acquisition of the Southern New Jersey Core Infill Portfolio

For More Information

Brian Evans

bevans@endurance-re.com

An affiliate of Endurance Real Estate Group, LLC (“Endurance”) and PCCP, LLC (“PCCP”) is pleased to announce the acquisition of the Southern New Jersey Core Infill Portfolio, a seven building, 553,548 SF warehouse/distribution portfolio located in Swedesboro, Delran and Mount Laurel, New Jersey (“Portfolio”). The Portfolio is currently 88% leased to twenty two (22) tenants, anchored by Food Sciences, Inc., Carnegie Pharmaceuticals, LLC, and The Jewelry Group, Inc. Endurance and PCCP acquired the Portfolio for $42.925 MM.  The team of Michael Hines, Brad Ruppel, Brian Fiumara and Lauren Dawicki of CBRE, Inc. represented the Seller in this transaction.

The Portfolio’s desired location along the New Jersey Turnpike provides convenient north, south, east and west access to the Greater Philadelphia and New York MSAs. The Burlington and Gloucester County markets are mature infill destinations with a history of high occupancy and rapid rent growth.  According to CBRE, the Burlington industrial market is reporting a vacancy rate of 5.4%, while the Gloucester County industrial market is reporting a vacancy rate of 6.2%. Vacancy rates for industrial space with modern specifications, as seen at the Portfolio, are much lower.

Over the trailing three years, the average asking rent for Southern New Jersey’s light industrial inventory has increased by over 31.6%. A severely limited number of industrial-zoned sites proximate to interstates and bridges, combined with a protracted multi-year approval/entitlement window and surging tenant demand have pushed asking rents for new light industrial developments in Southern New Jersey into the high-$5 range, and even higher for suites smaller than 50,000 square feet.

“The infill nature of the portfolio combined with the established core tenancy and staggered lease expirations was consistent with our long term investing strategy in well located submarkets. Endurance is excited to have completed our first transaction with PCCP,” stated Jared Newman, Vice President of Acquisitions at Endurance. “The assets proximity to I-295 and the greater Philadelphia metro area, coupled with the continued long term tailwinds for light-industrial product in high barriers to entry market like Southern New Jersey make this a very attractive investment,” added Benjamin Cohen, President of Endurance.

Scott Mertz from NAI Mertz has been named the exclusive agent for the portfolio. Current space availabilities within the portfolio include the full building availability of 57,930 SF at 601 Delran Parkway as well as a 5,000 SF suite located at 614 Heron Drive in Swedesboro.

About Endurance Real Estate Group

Founded in 2002, Endurance is a Radnor, Pennsylvania-based real estate owner/developer focused on income and value creation opportunities in the Mid- Atlantic region with a concentration in regional and bulk warehouse/distribution assets and office. Endurance’s current portfolio consists of nearly 3.9 million square feet of warehouse/distribution, flex, and office assets. Affiliates of Endurance have closed on ten (10) separate transactions over the last 2 years, totaling approximately 2.3 million square feet of warehouse, distribution, and flex space, as well as 113 acres of developable land. Endurance is currently developing 5 projects including the Interstate Distribution Center in Pittston, PA a 1,077,818 SF warehouse with an additional 1.2 million square feet in the planning stages at various sites within the I-81/I-78 corridor. For additional information on Endurance please visit www.endurance-re.com.

About PCCP

PCCP, LLC is a real estate finance and investment management firm focused on commercial real estate debt and equity investments.  PCCP has $11.6 billion in assets under management on behalf of institutional investors.  With offices in New York, San Francisco, Atlanta, and Los Angeles, PCCP has a 21-year track record of providing real estate owners and investors with a broad range of funding options to meet capital requirements.  PCCP underwrites the entire capital stack to exploit inefficiencies in the market and provide investors with attractive risk-adjusted returns. Since its inception in 1998, PCCP has managed, raised or invested over $23.1 billion of capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures.  PCCP continues to seek investment opportunities with experienced operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com.