Monday, August 3, 2020

$103M Construction Loan Secured for NJ Industrial Park

By Ingrid Tunberg
$103.5 million in construction financing was secured for two industrial buildings in Logan Township, NJ, as the exclusive adviser to Advance Realty Investors and Greek Development.

The loans, provided by Wells Fargo and Provident Bank, are designated for buildings H and E within the planned 3.2-million-square-foot, class A industrial site, Logan North Industrial Park.
Building H will serve as Logan North Industrial Park’s first asset to be developed out of ten total planned sites. The property is 100% pre-leased to Target, which will utilize the building as a flow center to fulfill online orders and restock retail centers. The facility, 60% of which will service retail stores and 40% will service for e-commerce needs, is estimated to create 1,300 jobs. Wells Fargo provided a $69 million construction loan for the development of building H.

Building E’s construction will commence immediately after building H’s development. The built-to-suit cold storage facility is pre-leased to the cold storage operator, Lineage Logistics, and will be operated by Lineage Logistics’ subsidiary, Preferred Freezer Services. The 189,889-rentable-square-foot site will offer 103 parking spaces, 44 trailer spaces and 20 dock doors. The property received $34.5 million construction loan from Provident Bank.

“With these two assets pre-leased, encompassing the first 1.3 million square feet of Logan North, our partnership is currently constructing Phase II of the development to meet continued demand in Southern New Jersey,” states David Greek, Greek Development’s director of acquisitions.

Cushman & Wakefield’s equity, debt and structured finance team, comprising John Alascio, Sri Vankayala, Chuck Kohaut, TJ Sullivan and Maya Steinberger, represented the borrower.

“It is a true testament to Wells Fargo and Provident Bank in understanding the vision and value proposition of Logan North in our uncertain economic environment,” states Alexander Cocoziello, Advance Realty Investors’ managing director of capital markets. “Our team could not be more pleased with the execution of Cushman & Wakefield and the broader sponsor team in these two deals.”

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