Loftex Logistics LLC, a leading Chinese textile company, which manufacturers and exports home textile goods has acquired a new 53,000-square-foot warehouse in New Jersey to use as its first fulfillment and distribution center in the US. The Company paid approximately $12.5 million for the warehouse in Carlstadt, about 15 miles west of New York.
The sale was announced at the end of February and the newly constructed warehouse was owned by Sitex Group, a New York private equity firm that specializes in real estate investment.
The space and its location were so desirable that Loftex Logistics, LLC went under contract on the property before construction even started, said Tom Vetter, senior vice-president of NAI Hanson, which represented Sitex in the sale.
They will continue to see quick absorption of new, quality industrial assets within the Meadowlands sub-market due to very little land available for development, its close proximity to New York City and the emergence of e-commerce, Vetter said.
Vetter said that though he hasn’t yet seen an apparent increase in the number of Chinese companies looking for warehouse space in New Jersey, it was the second deal he has closed for a Chinese company.
The other company, which he declined to disclose, is also a textile company looking for convenient warehouse space.
They are also looking to set up a distribution facility — just because of the proximity to New York and the highways that are in this part of New Jersey.
Loftex supplies companies with high-end home towels. The Shandong-based company is one of the largest towel manufacturers and exporters in the world.
With the growth of e-commerce, many companies are looking to New Jersey for warehouse space, according to NorthJersey.com. Vacancy rates in New Jersey are at their lowest in nearly two decades, according to Cushman & Wakefield.
The purchase also comes at a time when many Chinese companies are expanding into the United States with manufacturing and logistics chains, or simply investing in American property.
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