Industrial building in need of renovation attracts multiple offers, sells for 10 percent over asking price
Maywood, N.J. (April 11, 2022) – NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated the sale of a 17,316-square-foot industrial building at 217 Hergesell Avenue in Maywood, N.J. NAI James E Hanson’s Jonathan Kristofich represented the seller, Maywood Realty Corp, and David Williams of Weichert Commercial represented the buyer, 217 Realty, LLC, in the transaction.
217 Hergesell Avenue is a single-story building that is easily accessible from Routes 4 and 17 as well as Interstate 80, the Garden State Parkway and the New Jersey Turnpike. The vacant industrial building was formerly occupied by an adult daycare center that converted the building during the 2008-09 recession to its present configuration. Prior to the adult daycare conversion, 217 Hergesell Avenue boasted 15’ clear ceilings, two tailboards, one drive-in door and 36 surface parking spaces. NAI James E. Hanson’s marketing of the property highlighted the potential of restoring the building to its original industrial configuration as a creative way to secure industrial space in a tight market.
After a very competitive bidding process that drove the price 10 percent over the ask with limited contingencies, the buyer will restore the building to its original industrial use resulting in an additional 15 percent of capital expenditure relative to the purchase price. However, once the buyer completes the restoration, they will occupy a valuable industrial asset in an excellent location. Its previous use as an adult day-care center will necessitate the removal of partition walls and drop ceilings as well as the raising of sprinkler heads, HVAC ductwork and installation of new LED lighting.
“This transaction exemplifies just how little industrial space is available on the market today and the competition that is seen whenever any industrial product, no matter the current configuration, becomes available on the market,” said Kristofich. “Our expertise in the market has consistently positioned us to navigate the competitive bidding process in deals just like this to continue to secure top dollar for our clients.”