Holliday Fenoglio Seals Deal for Redevelopment of GM Plant in New Jersey

The Indianapolis office of Holliday Fenoglio Fowler arranged $70 million in financing for Duke Realty Corp. to redevelop a former General Motors manufacturing plant in Linden, N.J. The redevelopment project will receive a two-year adjustable rate loan with HSBC Bank USA, with  US Bank and The Private Bank as participants.HFF senior managing director David Keller (pictured) and associate director David Ross both worked to establish the financing and secure the loan, on behalf of a joint venture between Duke and also Stockbridge Real Estate Funds. Duke Realty specializes in the construction, development and management of office industrial and health care real estate, and owns or is currently developing more than 144 million rentable square feet in 24 cities in the United States. Duke Stockbridge Real Estate Funds, based in San Fransisco, is a private-owned investment manager that specializes in undervalued properties in major metropolitan markets.“It is very unique and valuable to assemble a 100-acre site within the New York, New Jersey metro area. The quality of the sponsorship and foresight of the bank group allowed this compelling deal to get done in these challenging times. The strength of HFF’s national platform and assistance from HFF New Jersey and New York offices was essential to the successful execution,” Keller told CPN.The parcel of land for the redevelopment is 104 acres located along Routes 1 and 9. The empty 2.7 million-square-foot GM plant, demolished last year, is now ready for redevelopment, and the infrastructure is already underway. Proposed plans include1.1 million square feet of industrial space and additional retail development. The construction of buildings anticipated to begin next year. The site is very close to the Linden Airport, as well as Port Newark and Port Elizabeth, New Jersey.Duke recently completed a similar redevelopment of a former GM plant in Baltimore. The defunct GM assembly plant was a $200 million project that was projected to bring 3,500 new jobs to Baltimore, according to estimates by the Baltimore Development Corp. They also estimated that that the project will result in a projected $61 million in property taxes over the course of 20 years. One can’t help but wonder whether more automobile plants are about to undergo redevelopment. When asked about this, Keller responded, “I hope and assume that there will be more redevelopment of US auto manufacturing sites, but possibly delayed until the capital markets heal a bit.”