CARLSTADT, NJ — Sun Noodle has purchased a 42,000 s/f industrial building at 40 Kero Rd. in Carlstadt. Commercial real estate services firm Cushman & Wakefield orchestrated the transaction, which represents a major expansion of Sun Noodle’s New Jersey factory operation.
Cushman & Wakefield’s Andrew Schiffer and James Yamauchi represented Sun Noodle in the purchase. Greg Sholom from Team Resources served as broker for the seller, A.S. Willemsen, LLC.
Sun Noodle initially leased a 5,000 s/f factory in Teterboro in 2012 for the purpose of serving its growing client base of New York City restaurants. “We have been fortunate in our rapid growth in our East Coast Operations, and by early 2014 we recognized the value of expanding and investing in New Jersey,” said Kenshiro Uki, Sun Noodle’s vice president of operations. “That’s when we met Andy and Jimmy and engaged them to help us find a facility that can accommodate our growth.”
According to Schiffer, Sun Noodle’s initial site requirement was 20,000 s/f. “We had a difficult time finding a building that met our parameters for location, quality and size,” he said. “We then opened the search for a slightly larger building, with the idea that Sun Noodle could lease part of it to a tenant.”
When the former Ralph Lauren building at 40 Kero Rd. became available, Uki saw an opportunity. “Our initial plan was to focus on growing the fresh, custom ramen noodle production in New Jersey,” he said. “However, purchasing this larger property will enable us to bring other products available exclusively in Hawaii to the mainland. And it will accommodate our growth for years to come.”
Many of those additional items require steaming, boiling or freezing. “While these items have been selling very well over the past few years, freight charges involved in shipping them have become burdensome,” Uki noted. “Our new, larger space in Carlstadt will accommodate the equipment and staffing needed to produce them right here.”
Schiffer noted that the market always has been attractive for companies serving the Manhattan restaurant industry. “For anyone with a client base in the city, the Meadowlands is an ideal location,” he said. “Multiple east-west roadways and mass transit connections provide fast and easy access. Sun Noodle made its purchase at an opportune time. As market fundamentals continue to improve, property values are beginning to increase.”
The Meadowlands industrial market recorded 3.2 million s/f of leasing YTD, according to Cushman & Wakefield research. “Over 2 million s/f of industrial product has been sold thus far in 2015 in the Meadowlands, slightly behind last year’s pace at this time,” according to Jason Price, Cushman & Wakefield’s director – tri-state suburbs, research. “As a result of steady leasing, the submarket’s vacancy rate has continued to dissipate, with the warehouse/distribution rate falling a full percentage point since the same period last year to 6.8%.”