AMC, Endurance team up for industrial deal.

AMC Delancey Group, a Pennsylvania-based national real estate investment company, announced it has teamed with its newest local operating partner, Endurance Real Estate Group, LLC, to acquire the 378,000 s/f I-295 Industrial Center in Westville, N.J. for $12.35 million. The companies plan to embark on a large-scale redevelopment program for this asset and convert the complex into industrial condominium units.

Having met through intermediary Ackman-Ziff, AMC Delancey and Endurance were both aware of the property's deteriorating condition and unique upside potential, and Endurance had actively pursued this transaction for over two years.

"We will be the operating partner in the agreement and have primary responsibility for the execution of the value creation strategy," said Bill White, CEO of Endurance. "However, having a partner like AMC Delancey, who brings years of hands-on real estate knowledge and experience, is an incredible benefit to us and the transaction."

AMC Delancey will be supplying the majority of the capital to allow for the conversion, as well as providing guidance on the comprehensive business plan.

"We have a very thorough due diligence process on our prospective operating partners and their strategies and transactions," said Kenneth P. Balin, president and CEO of AMC Delancey. "After researching Endurance, Ben Cohen and Bill White, we recognized that this was an excellent fit. They are highly ethical, bright real estate entrepreneurs with a good long-term business strategy for acquiring and repositioning office and industrial properties, and they welcome our input that is a result of our significant experience in the industry. Even though AMC Delancey has a local office and industrial portfolio, our strategy of forming long-standing partnerships with talented local operating partners allows us to take advantage of the opportunity to join forces with Ben and Bill."

"AMC Delancey is a well-capitalized, astute investor that has an exceptional depth of knowledge in all facets of real estate investment and operations, including financing and marketing," added Bill White. "AMC Delancey's acquisitions team, led by Michael Wachs, was a tremendous help in getting us to the closing table. This property has been under-managed for years, but in spite of that, tenants still love the location. Because the complex features a variety of small unit sizes, it offers the perfect opportunity and flexibility for condo conversion. We look forward to working with AMC Delancey further to offer small business owners throughout southern New Jersey the ability to own their own flex/office condominium in this facility."

Constructed in the 1970s and 1980s, I-295 Industrial Center is an 80% occupied flex property, consisting of 15 buildings ranging in size from 10,000 to 70,000 s/f. Upon conversion, tenants will have the opportunity to purchase their own space.

Brian Knowles, of CB Richard Ellis, and Mike Margolis, of Trammell Crow Company, represented the seller, Heather Croft, LLC, in this transaction.