New Jersey Cold Storage Project Lands $34M in Financing

JLL Capital Markets arranged the loan for a build-to-suit facility on the border of Elizabeth and Newark.
FreezPak Cold Storage Development. Rendering courtesy of JLL

A joint venture of Elberon Development Group and Fidelco Realty Group has received construction financing for an upcoming 140,000-square-foot cold storage project in Elizabeth, N.J. The build-to-suit facility will house New Jersey-based third-party logistics firm FreezPak Logistics.

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JLL Capital Markets arranged the 22-year construction to permanent loan with a life insurance company.

Slated to rise on 7.9 acres at 1029 Newark Ave., the refrigerated warehouse will become FreezPak’s fifth location in the state. The parcel is near Newark Liberty International Airport and Port Newark-Elizabeth, while interstates 95, 278 and 78 are all within 3 miles. 

The building will offer 10.5 million cubic feet of space, as well as 18 loading docks and 30,000 pallet positions. On-site excess trailer parking will also be available.

Senior Managing Directors Michael Klein and Jon Mikula and Director Max Custer led the JLL Capital Markets team representing the borrower. Last May, Elberon partnered with JLL to obtain a $20 million refinancing loan for its 175,000-square-foot cold storage facility situated just 1.5 miles east of the current site.

The onset of the pandemic has further increased demand for fresh produce storage space, especially in dense areas such as the New York City metro. A rise in online grocery sales has had a positive impact on the growth of the cold storage sector. According to a recent JLL report focusing on the performance of the industry in a post-COVID-19 world, there is a growing interest from third-party logistics companies such as FreezPack to enter the last-mile cold storage arena to serve the Food and Beverage industry’s consumer needs.