JLL Secures Loans for 11-Building Industrial Portfolio
- Jan 30, 2020
Summit Associates, a leading New Jersey real estate developer, has secured permanent financing for a fully-leased, 11-building industrial portfolio totaling 947,058 square feet in Raritan Center in Edison, N.J. JLL Capital Markets worked on behalf of Summit Associates to place eight uncrossed, fixed-rate loans with terms of 10, 12 and 15 years with a correspondent life insurance company.
The properties in the portfolio are: 104 Sunfield Ave., 305 Clearview Road, 523 Raritan Center Parkway, and 70, 75, 80, 85, 90, 95, 100 and 105 Newfield Ave. They were built throughout the 1980s and consist of single and multi-tenant buildings with ceiling heights ranging from 20 to 24 feet.
The portfolio is located within Raritan Center, a business park with more than 2,300 acres that is a major distribution hub for the Northeast. It contains roughly 15 million square feet of office, research, warehouse distribution and light industrial space with more than 3,000 tenants. Many of the industrial tenants also have office space within Raritan Center, which is strategically located near the New Jersey Turnpike, Garden State Parkway, I-287 and U.S. Routes 1 and 9.
Summit Associates, which has developed more than 3 million square feet of office, hi-tech and distribution space throughout New Jersey, is a major developer of Raritan Center. Amenities include a large expo center, several hotels, three banks, a travel agency and daycare center. The largest office structure is Raritan Plaza I, a Class A, 262,500-square-foot office building attached to the 284-key Sheraton Edison Hotel.
The JLL Capital Markets team representing Summit Associates was led by Managing Director Michael Klein and Analyst Andrew Zilenziger.
Klein noted in a prepared statement the relationship between the lender, borrower and JLL and its predecessor company, HFF, dates back more than 30 years. The deal was secured by HFF prior to being acquired by JLL in July 2019. Klein said the lender recognizes the historical strength of the Raritan Center industrial market and SAI’s dominant position as a landlord within the park. He said that resulted in an attractive loan structure that enabled Summit Associates to stagger the loan maturities, not cross the individual loans, and take advantage of an attractive interest rate on a long-term basis.
It has been a busy few weeks for JLL Capital Markets with deals closed in major markets throughout the U.S. The firm was part of two deals announced this week. In Charlotte, N.C., a JLL Capital Markets team represented New York Life Insurance Co. and LRC Properties in the $63.8 million sale of a 1.4 million-square-foot multi-tenant industrial complex to a partnership of Somerset Properties and Waterfall Asset Management. In Reno, Nev., JLL Capital Markets represented Panattoni Development Co. in the sale of Lear Industrial Center, a four-building business park encompassing 1.4 million square feet. Clarion Partners acquired the 73.7-acre property for $117.3 million. In a deal announced last week, JLL Capital Markets represented Stockbridge in the sale of a 126,303-square-foot industrial facility in Portland, Ore., for $16.2 million.