Cushman & Wakefield Helps New Jersey Client "Upsize to Downsize"

Kanebridge Corporation Acquires Flex Property in West Caldwell for $3.85 Million. End Quote

Newark, NJ (1888PressRelease) February 02, 2011 - Commercial real estate services firm Cushman & Wakefield, Inc. represented Kanebridge Corporation in its $3.85 million purchase of 38 Fairfield Place, an industrial flex property in West Caldwell, and now is serving as marketing agent for the company's soon-to-be former headquarters building at 153 Bauer Drive in Oakland. According to Cushman & Wakefield's Curtis Foster, his client has "upsized to downsize" in an unusual, strategic real estate shift.

JKL Properties, LLC, the seller of 38 Fairfield Place, was represented by Howard Weinberg and Matthew Turse of Cassidy Turley Commercial Real Estate.

Kanebridge Corporation, a master distributor of commercial and military-grade fasteners, will relocate to its new headquarters this spring, occupying approximately half of the 50,000-square-foot building. Already, an existing tenant there, Sloan & Company has renewed and extended its lease for the balance of the property.

Foster is marketing the firm's long-time home at 153 Bauer Drive for sale or single-tenant lease. The 44,301-square-foot building had become too big for the company due to a changing staff structure, according to Nick Peles, operations manager for Kanebridge Corporation.

"About two years ago, we incorporated an IP phone system that enables our customer service people to take calls and seamlessly log in to our system from remote locations," Peles explained. "A majority of our administrative staff now telecommutes - we have maybe eight people in the office on a typical day, as opposed to the 40 we had prior to the changeover. Our staff size has stayed the same, but the 13,000 square feet of office space we have in Oakland is unnecessary."

The firm retained Foster to find a smaller building that would better accommodate this new, more efficient operation. "Initially, we looked for a building with approximately 25,000 square feet of warehouse space, 20-foot ceilings and 5,000 square feet of offices," he said. "We quickly realized that we were facing a significant challenge to find a small building with these criteria that would also provide sufficient loading and truck access. We also saw that the cost per square foot for a building of that size was significantly higher than the larger buildings on the market - to the tune of 25 or 30 percent."

According to Peles, his company did not set out to buy a bigger building than it already had, or to take on the role of landlord, but the acquisition of 38 Fairfield Place ultimately made sense on a number of levels. "The value and features are right in line with what we wanted," he said. "Additionally, unlike many of the smaller buildings we saw, the West Caldwell property has a suburban feel, with plenty of grassy areas and its own parking lot - two features we are accustomed to in Oakland."

Foster currently is marketing the Oakland property, which he notes stands out as an excellent opportunity within the Bergen County market. "153 Bauer Drive occupies a prime position within Oakland Industrial Park," he said. "There are very few properties of this size in the region, and we are seeing strong interest from investors and users alike."

The 4.2-acre property, which sits just minutes from I-287 and routes 202 and 208, features 27,000 square feet of warehouse space with 22-foot clear ceilings, 13,000 square feet of office build out and 12,000 square feet of expansion potential. Foster noted that the space is flexible and well-suited for use as a corporate headquarters, warehouse, high-tech operation or showroom.

###

space

Other Related Press Releases