Jones Lang LaSalle

EXCLUSIVE: Ivy Realty Buys 108,000-SF Flex Building
By Eric Peterson
Last updated: February 27, 2006 10:06am
(To read more on the industrial market, click here.)

MAHWAH, NJ-Ivy Realty Fund I LP has acquired the 108,000-sf flex building located at 211 Island Rd. here, GlobeSt.com has learned. The purchase price of $6.6 million factors out to just over $61 per sf. The pick-up takes the Montvale-based Ivy Realty's holdings within Mahwah Business Park to approximately 510,000 sf.

"The acquisition of this property is in keeping with our investment strategy of acquiring properties that have a strong long-term potential for upside growth," says David Archibald Ivy's senior investment officer. In this case, the upside growth is that the seller, Bennett Brothers, will be vacating the property shortly. Bennett Brothers is a Chicago-based fulfillment and marketing incentives company that has been using the building as its eastern distribution center.

The seller's impending departure will leave Sony Corp., which uses the property as a warehouse, as the building's remaining tenant. The space being vacated "offers tenants the ability to lease space for either office or warehouse use," Archibald says.

The acquisition also follows the announcement, last week, that Ivy had refinanced its holdings within Mahwah Business Park. As reported by GlobeSt.com, Ivy refinanced those holdings to the tune of $20 million "to convert a floating-rate loan to fixed at an attractive rate," according to Archibald. In that refinancing, Holliday Fenoglio Fowler was the broker and Aetna was the lender.