08876 Archives | Sands Investment Group

Sands Investment Group is pleased to offer for sale this 23,910 SF industrial/flex building located in the highly sought-after northern New Jersey life sciences corridor. The seller, Precision Graphics Sale Leaseback, Inc., has been in business for over 50 years and has been operating at this location since 1999. Upon closing of escrow, Precision Graphics will lease the Mission Critical facility back from the buyer on an absolute net basis with an initial term of 15 years, offering the buyer long-term stable returns.

Irreplaceable Mission Critical HQ located in Central NJ, minutes from major highways
The tenant is a family run business that was founded in 1971 and has been operating at this location for over 25 years
Replaceable rent in highly desirable location and priced below replacement cost
Northern New Jersey industrial space is in very high demand – both the submarket and local markets are very tight, with limited supply of industrial, manufacturing, and research & development space; Historic high demand for flex space has driven the occupancy rate to over 95% and dramatically increased rents, which have more than doubled over the past ten years
Due to limited availability of land zoned for industrial uses, there is very little planned development of flex space, which will keep vacancy rates extraordinarily low and continue to drive rents higher
The seller is entering into a long term, 15 year, absolute net lease commencing at closing with 2% annual escalations
The property is located in the life sciences corridor of New Jersey, which includes over 3,200 companies in various industries including robotics, pharmaceuticals, high tech and advanced manufacturing, and more
Precision Graphics will use proceeds from the sale to repay the company credit facility and fund working capital, which will further their expansion into contract manufacturing
The seller installed 248Kw worth of solar panels in 2010, which they own; the power generated by the panels offsets approximately 70% of their electrical costs, which run high due to the electrical demands for this type of manufacturing
The facility is ITAR compliant (International Traffic in Arms Regulations) in order to meet the requirements of Precision Graphics government related contracts
The entire facility is climate controlled to maintain temperature and humidity levels that will protect the most delicate components