A group led by Houston-based investment firm Lovett Industrial has sold the 18-building Middlebrook Crossroads in Bridgewater less than three years after acquiring the industrial park. The buyer, New York-based asset management firm Thor Equities, paid $111 million for the complex, which spans 580,000 square feet and sits on 38.6 acres immediately adjacent to I-287 and US Route 22.
Cushman & Wakefield brokered the transaction and served as the listing team for the recent sale of the portfolio located at 1E Chimney Rock Road. A report in RE-NJ mentioned that the firm’s Gary Gabriel, Kyle Schmidt, Ryan Larkin, Seth Zuidema, and Bill Baunach led the assignment.
The industrial complex, consisting of 18 buildings ranging between 22,000 and 51,360 square feet and located less than 10 miles from I-78, is tenanted by UPS and Lexus.
However, the sale of the property reflects a slight gain for the sellers, contrasting with the substantial gains made in previous sales.
A report in MyCentralJersey.com indicated that Lovett and Starwood Real Estate Income Trust acquired the buildings from Washington-based Terreno Realty for $110.8 million in May 2022. At that time, the property had been owned by Terreno for 12 years and was 100% leased.
Terreno had purchased the industrial park from investment firm Advance for $27 million in 2010, when the complex was only 76% leased to 20 tenants.
On the other hand, a report in RE-NJ noted that Thor Equities holds more than 444,500 square feet of industrial space across facilities in Elizabeth and Passaic. The asset manager’s real estate assets in the U.S. are primarily in New York City, but the firm is developing a 230,000-square-foot industrial building at 153 Linden Street in Passaic. They also own the 784,000-square-foot Center of Excellence in Bridgewater and the 340,000-square-foot office building at 95 Greene Street in Jersey City, among other properties.
