Taurus stumbles upon a 339,000-square-foot shallow bay portfolio in South Jersey
Taurus Investment Holdings LLC has significantly expanded its U.S. industrial portfolio, now comprising more than 18 million square feet, with the global private equity firm’s latest acquisition in New Jersey.
Located in South Jersey, this strategically located, shallow-bay industrial portfolio consists of five Class B buildings totaling 339,136 square feet, according to a Nov. 16 announcement from Taurus. The 100% rental portfolio was purchased from Endurance Real Estate Group LLC of Pennsylvania and PCCP LLC of New York.
The package includes: 600 and 601 Delran Parkway in Delran plus 603 and 614 Heron Drive and 1 Killdeer Court in Swedesboro.
According to Endurance, a CBRE team of Vice Presidents Michael Hynes and Brad Rubel, 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 Swedensboro into a “cost-effective alternative to northern New Jersey” in the Garden State, with the Boston-based company citing lower operating costs, labor and property taxes in the southern portion. For the state, in addition to lower occupancy expenses, he highlighted.
“Industrial properties in Shallow Bay within 10 miles of I-95/I-295 in the New Jersey corridor currently have a vacancy rate of just 2.7%, with only 1.8% of 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, resulting in higher occupancy rates and rental growth.”
The properties in the Philadelphia metropolitan area were built in the 1970s and 1980s, according to Endurance, and feature an average ceiling height of 22 feet, wet sprinkler systems and large load capacity.
According to Taurus, the tenants of the newly acquired portfolio are: • Andermatt USA Corp. • Concrete polishing and prep solutions company. • 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 Acquisitions LLC dba JF Petroleum Group • Allied Beverage Group LLC • The Jewelry Group Inc. • Carnegie Pharmaceuticals LLC.
Shallow sites typically prioritize goods movement over warehousing, with an emphasis on distribution, light manufacturing, and regional or last-mile logistics.
On the seller’s side, Endurance President Benjamin Cohen said the sale confirms the company’s strategy. “We are pleased to announce the successful sale of our portfolio of five buildings in Delran and Swedesboro,” Cohen said in a statement. “I believe this transaction is a testament to the dedication and collaboration of our team, particularly in light of the difficult circumstances surrounding the acquisition in August 2020, at the beginning of the global pandemic.
He continued: “We believe this sale reaffirms our investment philosophy of purchasing well-located, functional light industrial across the Mid-Atlantic region.”
When the seller acquired the portfolio, 81% of it was leased, according to Endurance senior vice president and director Albert Corr. Speaking about the district’s request, he said that within the first three weeks of ownership, the entire building lease for 601 Delran Parkway was executed.
“This enabled us to focus on the balance of the rental portfolio, as 70% of our existing tenants were scheduled to renew within the first three years of our booking period,” commented Kaur. “We ended up completing 21 lease deals during our ownership period, which were a mix of new deals, expansions, relocations and renovations.”
Toros also pointed to the location of real estate as a catalyst, especially with the holiday shopping season approaching. Elsewhere in New Jersey, the company said it previously added 701 Delran Parkway in Delran as well as 200 Freeway Drive in Blackwood.
“This acquisition, based on the strength of the Gulf’s shallow market and very limited competitive offering, demonstrates our team’s ability to capture unique opportunities,” said Peter Merrigan, Taurus CEO. “As the market continues to evolve, Taurus has maintained our cautious and disciplined approach while also maintaining our entrepreneurial flexibility, allowing us to strategically leverage 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 of approximately 64,500 square feet on the site of an unused parking lot adjacent to one of the sites in the package.
This building will also include the installation of rooftop solar panels, according to the company, as will four of its existing assets, under the New Jersey Community Solar Program. RENU Communities, a subsidiary of Taurus, will oversee the installation.
According to RENU, the project will offset the portfolio’s annual carbon emissions by more than 300% – making it carbon negative.
In its announcement, Endurance also drew attention to its community approval for solar, which it said will provide power to 147 homes, more than half of which are low- to moderate-income households.