Pio Costa Industrial Park Portfolio Analysis
A comprehensive overview of the 10-building portfolio located at 1275 Bloomfield Avenue, Fairfield, NJ, including current performance metrics and potential growth opportunities.
Portfolio Overview
330,376
Total Square Footage
Across 10 buildings with diverse tenant mix
$4.1M
Annual Revenue
Current yearly gross income
$3.16M
Net Operating Income
After expenses and vacancy loss
$5.29M
Potential Revenue
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.
Building Size Distribution
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.
Rental Rate Analysis
Key Insights:
  • Specialty retail properties (Diner and Car Wash) command the highest PSF rates in the portfolio at $39.20 and $26.45 respectively
  • Industrial buildings average $13.58 PSF across the portfolio
  • Smaller storage units in Buildings 3-50A and 3-50R achieve premium rates compared to larger industrial spaces
  • Building 10 has one vacancy (Unit 95, 2,300 sq ft) representing potential additional income
The proposed $3.50 PSF rent increase would significantly boost portfolio revenue while maintaining competitive market rates.
Occupancy and Tenant Mix
98%
Overall Occupancy
Only 7 vacancies across 121+ units
121+
Total Units
Diverse mix of unit sizes from 70 sq ft to 30,400 sq ft
2%
Vacancy Rate
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.
Financial Performance by Building
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.
Growth Opportunity: NNN Conversion & Rent Increase
Potential NOI Growth:
  • NNN Conversion: $643,376 increase (17.2%)
  • With $3.50 PSF Rent Increase: $1,118, increase (28,3%)
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.
Key Investment Highlights
Strong Current Performance
The portfolio delivers $3.1M in annual NOI with a 98% occupancy rate, demonstrating consistent demand and operational efficiency.
Diverse Tenant Mix
With over 121 units ranging in various sizes, the portfolio serves a wide range of tenant needs, reducing dependency on any single tenant.
Significant Growth Potential
NNN conversion and rent increases could boost NOI by up to 17.2%, representing a compelling value-add opportunity without requiring significant capital expenditure.
Prime Location
Fairfield, NJ location provides excellent access to major transportation routes and serves a dense population of businesses and consumers.
Ready to explore this investment opportunity?
Connect with our dedicated team of commercial real estate specialists.
Tatiane Ubagai
Cell: 917.403.9381
Email: ubagai@sitarcompany.com
William Sitar Jr.
Office: 732.283.9000
Email: bsitarlaw@sitarcompany.com
John Cranley
Office: 732.283.9000
Email: cranley@sitarcompany.com