HFF Secures $15M Loan for NJ Industrial Asset
- Aug 11, 2017
A joint venture between EverWest Real Estate Partners and Accordia Realty Ventures tapped HFF to secure financing for its rail-served warehouse distribution building and adjacent 16-acre development site in South Brunswick, N.J. The property is subject to a short-term sale-leaseback with Hermann Services Inc.
HFF secured the borrowers a $14.9 million, three-year, floating-rate loan through Malvern Federal Savings Bank. The loan is being used to cover acquisition and closing costs, pay for planned renovations to the property and soft costs associated with approvals for the development site.
Strong Industrial Location
The 368,537-square-foot asset is located at 83 Stults Road in the Exit 8A industrial submarket, known as one of the nation’s leading industrial markets. The property is less than 40 miles from Newark Liberty International Airport and the Port of Newark/Elizabeth, 46 miles from New York City and 53 miles from Philadelphia.
The property offers 23 loading docks, 14,745 square feet of office space, 24-foot clear ceiling heights, one drive-in dock, 160 parking spaces, loading doors, refrigerated storage, sky lights, insulated ceilings and climate control. Originally built in 1974, the building underwent cosmetic renovations in 1999 and 2011. The joint venture plans on subdividing the property and erecting a 200,000-square-foot warehouse on the adjacent land.
“8A is one of the strongest industrial submarkets in the state and we’re confident that they will do extremely well with this property,” said Michael Klein, managing director, in prepared remarks. The property’s location and borrower’s experience with similar types of transactions allowed Malvern to provide a very competitive rate and a creative loan structure that will enable the borrower to easily execute its business plan during the loan term.”
The HFF debt placement team representing the borrower was led by Klein and Senior Managing Director Eric Tupler.
In another joint venture, EverWest Real Estate Partners and Independencia Asset Management recently purchased South Towne Corporate Center in southern Salt Lake City, totaling 262,219 square feet.
Image courtesy of Yardi Matrix