Denver industrial commercial real estate firm Black Creek Group bought two parcels totaling 45 acres in Burlington County, as demand for industrial properties in the area continues to rise.
Sale prices for the two South Jersey parcels were not disclosed or immediately available in public records.
Black Creek Group's deal includes a 35-acre parcel at 1517 Route 38 in Hainesport near the intersection with the Mount Holly Bypass. Atlantic Wood Industries was the seller. The property, currently used as a storage and distribution site for treated wood products, is located behind Mount Holly Nissan and a Travel Inn that sit on Route 38.
Black Creek — which owns and manages more than 47.1 million square feet of industrial space in 25 markets across the country — also purchased an adjacent 10-acre wooded property at 1499 Route 38 from a private landowner.
Hainesport’s township committee is in the middle of declaring the 45 acres, as well as surrounding properties at 1513 Route 38 and 1521 Route 38, as an area in need of redevelopment. By adopting the plan the township will be able to offer developers of the properties financial incentives, like payment-in-lieu-of-taxes, or PILOT agreements. The redevelopment is scheduled for a public hearing and final vote on Feb. 16.
Development plans for the parcels were not immediately available.
Lee & Associates of Eastern Pennsylvania's Bob Yoshimura, Joe Hill, Eric Mattson and Joe Hill Jr. brokered the 35-acre parcel sale on behalf of Atlantic Wood Industries and advised Black Creek in its purchase of the 10-acre parcel. A spokesperson for Lee & Associates said the parties did not want to disclose additional information about the sale, including whether the buyer might pursue financial incentives like a PILOT.
The 35-acre parcel was previously used for preserving wood products for industrial uses and will need environmental remediation to be redeveloped for commercial purposes, according to a preliminary review of the proposed redevelopment area conducted by Taylor Design Group on behalf of the township this past fall.
Most of the properties that border the Mount Holly Bypass and Route 38, on the border of Hainesport and Lumberton, are industrial. They include a metal recycling facility and an asphalt milling plant.
A Starbucks recently opened at the intersection and across Route 38 sits a large shopping plaza anchored by a ShopRite and Lowes. The ShopRite side of the plaza, Cross Roads Plaza, sold for $18.25 million last year. Behind the plaza, CVS operates a 1.2-million-square-foot distribution center — one of its largest nationwide — that sits amid a half dozen other industrial and office buildings.
Black Creek has a Northeast office in North Jersey, just outside of New York, and owns numerous other properties in the Philadelphia region, including a distribution center on Meetinghouse Road in Philadelphia and a five-building industrial portfolio in King of Prussia. It also bought a 300,000-square-foot warehouse in Mount Laurel, Burlington County for $32.3 million last year.
The Hainesport property was attractive in part because of its proximity to the New Jersey Turnpike and I-295, the brokers said. Burlington County’s rich transportation assets have helped it draw more demand for industrial properties that can be used for warehousing and distribution. Net absorption for Class A industrial properties in the county grew 29% from 2019 to 2020, according to Lee & Associates, jumping from 2.1 million square feet to 2.7 million.
“Burlington County is experiencing unparalleled demand from the institutional development community as the need for modern distribution space that can efficiently service large consumer bases continues to rapidly accelerate,” Yoshimura said in a statement.
In the past year alone, the brokers have also represented the seller of a 117-acre industrial site at 1900 River Road in Burlington Township for $110.5 million and the seller of a 30.8-acre industrial site at 839 Railroad Ave. in Florence for $14.75 million. Black Creek was also the buyer in the Florence sale and is in the midst of building a 300,700-square-foot warehouse on the site.
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