Holliday Fenoglio Fowler (HFF) announced this week that it had arranged $23.8 million in construction financing for a 138,642-square-foot built-to-suit warehouse in Elizabeth, New Jersey. The construction/perm loan was provided by The Provident Bank to a partnership between Elberon Development Group and The Avidan Group that is developing the new state-of-the-art freezer warehouse. The HFF team representing the borrower was led by director Michael Klein and senior managing director Jon Mikula. HFF previously marketed the property on behalf of the former owner, Oakmont Hayward I LLC, and procured a buyer, Fairmount Redevelopment Group, selling the redevelopment site for $5 million in January 2014. Fairmount Redevelopment Group is led by Josh Avidan of The Avidan Group and Dave Gibbons of Elberon Development Group.
"The borrower was looking to take interest rate risk out of the equation given the tenant's 20 year lease and engaged HFF to secure a construction loan that would roll right into a long-term perm loan," Klein said. "The Provident Bank clearly understood this specialty use product as well as the tenant's business model and was able to provide a loan that best met the borrower's short and long term needs."
Located at 900 Fairmount Ave., the cold storage facility development is expected to be completed in June 2016. Seafrigo NA Cold Storage, a logistics company for the food business, will occupy 100% of the space, according to a NJBIZ article. The property is less than five miles from Newark Liberty International Airport and the port of Elizabeth/Newark, and also in close proximity to an extensive highway network that allows ready access to Interstate 78, Interstate 278 to Staten Island and Brooklyn and State Highway Routes 1 and 22.
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