Studley Industrial Services Group celebrates doller 24m in leasing deals

The Industrial Services Group of national commercial real estate firm Studley has represented leading U.S. companies, Coca-Cola Enterprises and Flaghouse on transactions that will keep these companies operating major distribution centers in New Jersey, as well as represented existing client Georgia- Pacific with the disposition of excess space.

The transactions, closed in the fourth quarter of 2005, total 492,000 square feet and are valued at $24 million.

Coca-Cola Enterprises signed a five-year lease renewal for the entire 134,000-square-foot building at 701 Jefferson Road in Parsippany. The deal, valued at $4 million, will allow Coca-Cola to maintain low operational costs on the major Northeast distribution facility it has occupied since the mid- 1970s.

Studley's Senior Vice President Thomas R. Carragher and Senior Managing Director Daniel Foley represented Coca-Cola Enterprises in the transaction. The team has represented Coca-Cola in more than one million square feet of leases since 1997.

The landlord, Weny Brothers, was represented in-house by Scott Perkins, a partner with the firm and James E. Hanson, managing director at NAI.

Flaghouse, a global supplier of sports and recreational equipment to educational and physical therapy institutions, also renewed its lease for another five years with a deal valued at $4 million.

The company will continue to warehouse and distribute product from 601 Route 46 West in Hasbrouck Heights, a facility it has occupied for 10 years.

Mr. Carragher and Senior Managing Director Christopher B. Marx represented the tenant. Ernie Christoph of Hartz Mountain Industries represented his firm, the property's landlord.

The third transaction is a property disposition, according to Mr. Carragher. Studley represented Georgia Pacific on the disposition of 240,000 square feet of excess space at 6801 Westside Avenue in North Bergen. "With a 10-year sublease valued at $16 million, Party Rental leased Georgia-Pacific's remaining square footage at this address permitting the company to obtain revenue on previously unused space," explained Burton I. Gubenko, corporate managing director at Studley, who along with Mr. Carragher represented Georgia-Pacific on this and a sublease earlier this spring with Veeco Services for 378,000 square feet at the same location.

Party Rental, Inc. is consolidating two facilities in Teterboro and Hackensack, as well as expanding its total square footage by approximately 60,000 square feet at the Westside Avenue location. The firm plans to occupy its new space in the first quarter of 2006. Robert Kossar and David Knee of Lee Klatskin Associates represented the tenant.

"For each of these transactions, Studley performed thorough analyses of market conditions to provide the best possible solution for the client," said Mr. Carragher. "In the case of both Coca-Cola Enterprises and Flaghouse, we determined it was logistically beneficial and cost effective for each tenant to remain in its existing location rather than undertake a costly move."

"In the case of Georgia-Pacific," Mr. Carragher further explained, "our experience representing industrial tenants enabled us to provide strategic advisory services to the company as a sublandlord. We were the third real estate services firm Georgia-Pacific hired to fully lease the property that sat vacant for three years and the only one to accomplish it."

"Our primary focus as a tenant rep enabled us to identify companies that could benefit from the unique floor plan and ceiling heights of the property, as well as its proximity to a main transportation corridor," noted Mr. Gubenko.

Studley's Industrial Services Group (ISG) partners with clients to develop innovative and comprehensive solutions designed to reduce occupancy costs and deliver operational efficiencies across their distribution networks.

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Studley Industrial Services Group celebrates doller 24m in leasing deals