By Paul Schwedelson, Philadelphia Business Journal
A recently built, vacant warehouse in Lumberton, New Jersey, has traded for a discounted $34.3 million after the developer’s lender took back and subsequently sold the site.
Dallas-based Dalfen Industrial acquired the 219,123-square-foot Lumberton Logistics Center in an off-market deal from Chicago-based lender Pangea Mortgage Capital, according to multiple industry sources.
Wall, New Jersey-based Active Acquisitions, which specializes in building industrial properties in the Garden State, developed the site at 1800 Route 38 in 2023. The building was built speculatively and hasn’t been leased, according to Dalfen Industrial.
An entity affiliated with Pangea Mortgage Capital took ownership of the building in April, Burlington County property records show. Pangea Mortgage Capital was Active Acquisitions’ lender, according to sources.
The building has 40-foot clear heights, a one-to-6,000 door-to-floor ratio with 35 loading positions and it’s demisable for a single tenant or multiple tenants. Dalfen Industrial is also planning to build a 2,500-square-foot office within the building.
The acquisition fits Dalfen Industrial’s strategy “to acquire last-mile buildings in high barrier-to-entry population centers,” Keith Hontz, the company’s northeast market officer, told the Business Journal.
Dalfen Industrial owns more than 50 million square feet of space and specializes in infill warehouses and distribution centers. The firm owns and operates 4 million square feet in the Northeast. Another 800,000 square feet is under contract and 500,000 square feet is under development. Its portfolio includes a two-building, 260,200-square-foot industrial complex in Quakertown as well as properties in Lancaster County and North Jersey.
Dalfen Industrial’s “bread and butter” is leasing to tenants looking for space between 100,000 and 250,000 square feet, Hontz added. That’s where the firm has seen the most demand recently.
“Leasing overall has been somewhat slower year to date but since the election we’ve seen some more interest from tenants across all of our listings,” Hontz said. “This building caters to the majority of demand in and around the submarket.”
Lumberton Logistics Center’s flexibility allows it to be used for last-mile distribution, third-party logistics providers, light manufacturing or warehousing needs, Hontz said. Since the building could be occupied by one or multiple tenants, he’s optimistic in the leasing efforts.
The $34.3 million price tag, which comes out to about $156 per square foot, is also less than the building’s replacement cost, Hontz said, adding to its appeal.
The property is less than two miles from Route 206, less than seven miles from Exit 5 on the New Jersey Turnpike and less than eight miles from I-295.
The sale of Lumberton Logistics Center follows the recent trend of an uptick in activity in the industrial market. In the third quarter, the Philadelphia region’s industrial vacancy rate fell from 7% to 6.5%, the first time it dropped since late 2022, according to brokerage firm Colliers.
Earlier this month, global supply chain company Martin Brower signed a lease to occupy the entirety of a new 147,000-square-foot Northeast Philadelphia warehouse developed by Crow Holdings Development. A joint venture of Endurance Real Estate Group LLC and Greystar-Thackeray recently announced they’re planning a 176,000-square-foot warehouse in Montgomery County.