Taurus Investment Holdings LLC has significantly expanded its U.S. industrial portfolio, which now boasts more than 18 million square feet, with the global private equity firm’s latest acquisition in New Jersey.
Situated in South Jersey, the strategically positioned shallow-bay industrial portfolio comprises five Class B buildings totaling 339,136 square feet, according to a Nov. 16 announcement from Taurus. The 100%-leased portfolio was purchased from Pennsylvania-based Endurance Real Estate Group LLC and PCCP LLC of New York.
The package includes: 600 and 601 Delran Parkway in Delran as well as 603 and 614 Heron Drive and 1 Killdeer Court in Swedesboro.
According to Endurance, a CBRE team of Vice Chairmen Michael Hines and Brad Ruppel, Vice President Joe Hill, Director Lauren Dawicki, Senior Vice President Dan McGovern and Associate Charlotte Sands brokered the sale. Financial terms were not disclosed.
For the buyer, the acquisition expands Taurus’ footprint in Delran and Swedesboro in the Garden State’s “cost-effective alternative to Northern New Jersey,” with the Boston-based firm pointing to lower operational, labor costs and real estate taxes in the southern part of the state, along with reduced occupancy expenses, as highlights.
“Shallow-bay industrial properties within 10 miles of I-95/I-295 in the New Jersey corridor currently have a vacancy rate of only 2.7%, with a mere 1.8% of the inventory under construction,” Taurus Managing Director of US Industrial Lathan Allen said. “This favorable supply/demand dynamic is expected to result in shallow-bay industrial properties outperforming the broader market, leading to higher occupancy rates and rent growth.”
The properties in the Philadelphia metropolitan area were built in the 1970s and 1980s, according to Endurance, and feature 22-foot average clear ceiling heights, wet sprinkler systems and ample loading capacity.
According to Taurus, tenants of the newly acquired portfolio include: • Andermatt USA Corp. • Concrete Polishing & Prep Solutions Inc. • Colt Atlantic Services LLC • Jack Pears & Associates LLC • BioClimatic Air Systems LLC • Commerce Construction Corp. • Innes Holdings Inc. • R&R Ceilings Inc. • SGS North America Inc. • Lancolia LLC • Centerline Communications LLC • B&J Pets and Aquariums Inc. • TDX Global Solutions LLC • SFX Installation Inc. • Healgen Scientific LLC • Innovative Concessions Enterprises LLC • EagleBurgmann Industries LP • ERIKS North America (Lewis-Goetz & Co.) • JF Acquisition LLC dba JF Petroleum Group • Allied Beverage Group LLC • The Jewelry Group Inc. • Carnegie Pharmaceuticals LLC.
Shallow-bay sites typically prioritize the movement of goods over storage, with a focus on distribution, light manufacturing, and regional or last-mile logistics.
On the seller’s end, Endurance President Benjamin Cohen said the sale underscores the company’s strategy. “We are excited to announce the successful sale of our five-building portfolio in Delran and Swedesboro,” Cohen said in a statement. “I think this transaction is a testament to the dedication and collaboration of our team, particularly in light of the challenging circumstances surrounding the acquisition in August 2020, at the onset of the global pandemic.
“We believe this sale reaffirms our investment philosophy of buying well located functional light industrial across the Mid-Atlantic,” he continued.
When the seller acquired the portfolio it was 81% leased, according to Endurance Senior Vice President and Principal Albert Corr. Speaking to the area’s demand – within the first three weeks of ownership, a full-building lease for 601 Delran Parkway was executed, he said.
“This enabled us to focus on the balance of the leased portfolio, as 70% of the existing tenants were scheduled to roll within the first three years of our hold period,” Corr commented. “We ended up completing 21 lease transactions during our ownership period, which was a combination of new deals, expansions, relocations and renewals.”
Taurus also pointed to the properties’ location as incentivizing, especially as the holiday shopping season gets into high gear. Elsewhere in New Jersey, the firm said it has previously added 701 Delran Parkway in Delran as well as 200 Freeway Drive in Blackwood.
“This acquisition, based on the strength of the shallow-bay market and an extremely limited competitive supply, demonstrates our team’s ability to source unique opportunities,” Taurus CEO Peter Merrigan said. “As the market continues to evolve, Taurus has maintained our cautious, discipline approach but also retaining our entrepreneurial flexibility, allowing us to strategically enhance assets to offer our clients the best risk-adjusted returns.”
In South Jersey, Taurus said it plans to add a new, Class A industrial property with approximately 64,500 square feet at the site of an unused parking field adjacent to one of the sites in the package.
That building will also include the installation of rooftop solar panels, according to the company, as will four of the existing assets, under the New Jersey Community Solar Program. RENU Communities, a subsidiary of Taurus, will oversee the install.
According to RENU, the project will offset the portfolio’s annual carbon emissions by more than 300% — rendering it carbon negative.
In its announcement, Endurance also called attention to the community solar approval, which it said will provide power to 147 homes, more than half of which are low- to moderate-income households.
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Author: Jessica Perry