A vast industrial complex in Passaic is changing hands, with new investors planning to convert some its 51 buildings into retail areas as a first step toward redevelopment.
The 1.6 million-square-foot site, which occupies about 31 acres of land at 90 Dayton Ave., was sold recently in a deal brokered by CBRE, the firm said in a news release from its Saddle Brook office. Passaic Industrial Center Associates sold the property to an unnamed investor; through a spokeswoman, CBRE declined to disclose the sale price.
The brokerage said the new owner plans to stabilize the property and hold it as an investment, while developing a portion for retail use. The site, which was first developed around 1894, is used for warehousing, manufacturing and distribution purposes.
Passaic was designated in 1994 as one of the state's Urban Enterprise Zones, qualifying it for tax breaks to encourage business development. But the city would also become one of four Garden State Growth Zones under the most recent version of a state Senate bill to overhaul New Jersey's incentive programs, making it eligible for additional subsidies and special programs to drive investment.
In the news release, CBRE broker Charles Berger said the property offers an opportunity for mixed-use development including retail, industrial and multifamily.
Berger teamed with CBRE executives Darcy Stacom, Paul Lebowitz and Elli Klapper to broker the sale, the news release said. Industrial brokers Bill Waxman and Mindy Lissner have been tapped to lease the property, and the firm plans to bring in retail specialists to market the portion that will be converted.
Reporter Joshua Burd is @JoshBurdNJ on Twitter.