Denholtz Properties announces the acquisition of a 241,171-square-foot industrial building located at 250 West Nyack Road in West Nyack, N.Y.
Located just over the New Jersey/New York state border in Rockland County, N.Y., 250 West Nyack Road is ideally situated at the interchange of the Palisades Parkway and Interstate 287, providing easy access to NYC, Westchester and Fairfield County via the nearby Governor Mario Cuomo Bridge and northern New Jersey via Interstate 287.
The property sits on 14.9 acres and boasts 204,598 square feet of warehouse space, 31,144 square feet of office space and 6,429 square feet of common area. The building features warehouse ceiling heights between 20’-22’ clear with 19 loading docks, 5 drive-ins, ample outdoor storage space and 209 parking spaces. Currently, the property is 95.8 percent leased to a variety of tenants including industrial tenants such as Guski Logistics Corp., DCH Auto Group, SCP Distributors and Artcore. The Internal Revenue Service and Social Security Administration are among its largest office tenants.
Constructed in 1972, the property recently underwent a $1.3 million capital improvement plan to bring it up to modern industrial standards that included a roof replacement, exterior painting, asphalt repairs which included repaving, full lot sealing and striping, and façade and concrete repairs. In addition, the property is currently in pre-development for rooftop solar based on a long-term lease.
“Rockland County’s easy access to New York City and strong demographics paired with a severe supply lag make it a highly attractive industrial market,” said Mark Mahasky, Director of Capital Transactions at Denholtz Properties. “We are excited for the opportunity to acquire a stabilized, multitenant industrial asset in this market that promises near-term stability as well as long-term value-add potential.”
Compared to New York City’s market rent of $22.50-per-square-foot and northern New Jersey’s rate of $13.96-per-square-foot, Rockland County’s market rent of $12.00-per-square-foot makes the area an attractive option for value-oriented tenants requiring access to the New York market. However, since 2017, the market has only seen the construction of three industrial buildings totaling just 60,250 square feet and currently has a vacancy rate of 4.2 percent. The undersupply has led to corresponding rent growth of around 30 percent over the past five years, showcasing the long-term growth potential of the market.
The acquisition of 250 West Nyack Road is the latest addition to Denholtz Properties multimillion-square-foot portfolio of multitenant industrial assets across N.J., Fla. and N.C. Denholtz Properties’ industrial portfolio provides investors with access to stabilized, risk-adjusted industrial investments in many of the nation’s most in-demand industrial markets. In addition, Denholtz Properties institutional quality management and leasing experience combined with an agile and flexible approach ensure its tenants’ needs are continually met.
JLL’s team of Jose Cruz, Andrew Scandalios, Marc Duval, Tyler Peck, Jordan Avanzato and Nicholas Stefans represented the seller in the transaction.