March 26, 2020
A private buyer has closed on two Jersey City warehouses for a combined $23.75 million, and the properties are expected to join the city’s growing lineup of film studio space, according to Jersey City based brokerage firm Grid Real Estate.
The deal covers 14-16 Burma Road, an 81,000-square-foot industrial complex, and 150 Theodore Conrad Drive, a 40,000-square-foot building. Both sit within Jersey City’s Liberty Harbor Redevelopment Area, a location that has become increasingly attractive to entertainment companies looking for large, adaptable industrial space close to New York City.
The seller, Capital Moving and Storage, isn’t going anywhere just yet. The deal includes a sale-leaseback arrangement, meaning Capital Moving and Storage will continue operating out of the buildings for now even though ownership has changed hands. Grid Real Estate noted that both properties are ultimately expected to be converted into production studio space as demand for filming locations in New Jersey continues to climb.
Why Jersey City keeps attracting film and television production
This isn’t the first Jersey City warehouse to make the leap from storage to soundstage. Last year, Criterion Group LLC acquired 21 Caven Point Ave., a 135,000-square-foot warehouse, with plans to convert it into studio space to meet rising demand. The Burma Road and Theodore Conrad Drive properties appear to be following that same path.
Grid Real Estate President Bob Antonicello said he and his team expect both properties to become part of that trend. “Building studio infrastructure is a game-changer for building the entertainment industry in New Jersey,” Antonicello said.
He also pointed to what the conversion means for the region long term. “The repurposing of these two mid-century warehouse buildings to state-of-the-art production studios is a huge step forward in creating the kind of infrastructure New Jersey and Jersey City will need to continue to grow the entertainment business in New Jersey,” Antonicello said. “Studio infrastructure, like the cutting-edge studios planned here, is a game changer for both the city, the state and region.”
What makes Jersey City a strong fit for studio conversions
A few factors keep pulling production companies toward Jersey City warehouses. The city and state have both shown a strong willingness to welcome the film industry back to New Jersey. There’s also a solid supply of large industrial buildings that can realistically be converted into production space, along with a deep, skilled local workforce and a location that offers easy transit access to New York and the surrounding region.
Eugene Paolino, an attorney with Genova Burns who represented the buyer alongside colleague John Suwatson, echoed that point. “The purchase of these two properties is just another indication of the attraction that Jersey City holds for movie studios, not only because of the receptiveness of the City and the State to the return of the film industry to New Jersey but also because of the availability of suitable properties, a superb pool of talented workers and the location of Jersey City as an unparalleled transit hub,” Paolino said.
As more industrial buildings in Jersey City get a second life as production studios, the city is quickly becoming one of the more compelling entertainment industry hubs in the Northeast, a trend that Grid Real Estate expects to continue.
Jersey City warehouses sell for $24 million, slated for film studio space
