A comprehensive overview of the 10-building portfolio located at 1275 Bloomfield Avenue, Fairfield, NJ, including current performance metrics and potential growth opportunities.
Across 10 buildings with diverse tenant mix
Current yearly gross income
After expenses and vacancy loss
With proposed $3.50 PSF rent increase
The Piocosta Industrial Park consists of 10 buildings with a diverse mix of unit sizes and tenant types. The portfolio currently generates $4.1M in annual revenue with a net operating income of $3.16M after accounting for expenses and vacancy losses.
The portfolio features a range of building sizes, from the largest Building 3 at 73,515 sq ft to smaller specialty properties like the 1,500 sq ft diner. Three buildings (3, 6, and 8) account for approximately 60% of the total portfolio square footage.
The proposed $3.50 PSF rent increase would significantly boost portfolio revenue while maintaining competitive market rates.
Only 7 vacancies across 121+ units
Diverse mix of unit sizes from 70 sq ft to 30,400 sq ft
Well below market average, indicating strong demand
The portfolio maintains exceptional occupancy with only 7 vacant units across more than 121 total units. Vacancies are primarily concentrated in the smaller storage units in Buildings 3-50R, 3-54, and 3-59, with only one larger vacancy in Building 10.
Building 8 delivers the highest NOI in the portfolio despite not being the largest, driven by strong rental income and efficient operations. The Car Wash stands out for its exceptional income per square foot, showcasing how small-format assets can yield outsized returns when paired with low expenses and premium rents.
Converting leases to NNN structure would shift property tax and insurance expenses to tenants, significantly improving NOI. The additional $3.50 PSF rent increase would further enhance returns while maintaining competitive market rates.
Implementation strategy should include phased lease conversions as current agreements expire, with clear communication to tenants about market comparables.
The portfolio delivers $3.1M in annual NOI with a 98% occupancy rate, demonstrating consistent demand and operational efficiency.
With over 121 units ranging in various sizes, the portfolio serves a wide range of tenant needs, reducing dependency on any single tenant.
NNN conversion and rent increases could boost NOI by up to 17.2%, representing a compelling value-add opportunity without requiring significant capital expenditure.
Fairfield, NJ location provides excellent access to major transportation routes and serves a dense population of businesses and consumers.
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Pio Costa Industrial Park Portfolio Analysis