A joint venture between Barings and Vision Real Estate Partners has acquired Melanie Lane Industrial Portfolio located in the highly-infill Northern New Jersey submarket of Morris County.
The 167,000 square foot portfolio is comprised of three shallow-bay industrial facilities that feature a high-quality and diverse rent roll.
Accessible to 2.3 million consumers within 15 miles and nearly 10 million consumers within an hour-drive, the Melanie Lane Industrial Portfolio is located near several of New Jersey’s most affluent communities, including Morristown, Essex Fells, Chatham, Livingston, Madison, and Florham Park.
Barings said it has conviction that there is strong relative value in infill industrial assets due to the growing demand for last-mile delivery across the tri-state area.
This conviction is reinforced by the strong annual rent growth experienced in the submarket and the limited availability of new developable land, according to the company.
“We are excited to add the Melanie Lane industrial assets to Barings’ portfolio,” said Chris Berry, Managing Director for Barings U.S. Real Estate. “The firm’s active management approach and targeted focus have translated to a successful industrial track record, and we look to continue this execution with this portfolio.”
“We are excited to partner with Barings on the acquisition of the Melanie Lane Industrial Portfolio,” said Ross Chomik, Managing Partner of Vision Real Estate Partners. “The portfolio was particularly attractive to us given its location and proximity to affluent surrounding communities and Northern NJ’s strong highway network. Vision’s hands-on management platform and immediate local presence will provide a significant value-add to the Portfolio and our partnership. This acquisition further demonstrates Vision’s commitment to acquiring and developing industrial product in our core market.”
“Barings continues to target high-quality infill industrial assets, and we are excited to increase our footprint in the Northern New Jersey industrial market, given its strong supply/demand fundamentals, which position it for sustained growth into the future,” said Payton Larson, Barings Director and Acquisitions Officer.
Barings said the Northern New Jersey industrial market is one of the most supply constrained markets in the U.S., and as of Q2 2021 had a vacancy rate of 3.5%.
The fourth largest industrial market in the nation, the Northern New Jersey industrial market continues to see robust demand for warehouse space.