$23.8 million financing for development of cold storage facility in Elizabeth, New Jersey, arranged by HFF
FLORHAM PARK, NJ – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $23.8 million in construction financing for a 138,642-square-foot, state-of-the-art freezer warehouse in Elizabeth, New Jersey.
HFF worked on behalf of the developer, a partnership between Elberon Development Group and The Avidan Group, LLC, to place the construction/perm loan with The Provident Bank.
The build-to-suit facility will feature 60’ clear heights, 18 temperature-controlled loading doors and 4,800 square feet (3.5 percent) of office space. Due for completion in June 2016, the building will be 100 percent occupied by Seafrigo NA Cold Storage, Inc., a global logistics company for the food business that operates on several continents. Located at 900 Fairmount Avenue in Elizabeth, the new facility is less than five miles from Newark Liberty International Airport and the port of Elizabeth/Newark and approximately one mile from the entrance to exit 13A of the New Jersey Turnpike (I-95). This location is optimal for Seafrigo, since much of the product Seafrigo handles travels through either the port or Newark Airport. The property is 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. Additionally, an ample and qualified labor pool is available in the city of Elizabeth and surrounding municipalities.
The HFF team representing the borrower was led by director Michael Klein and senior managing director Jon Mikula.
“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.
About Elberon Development Group
Elberon Development Group, a third-generation family business, has been developing, constructing, owning, and managing commercial real estate for almost 100 years. Founded by David O. Evans in 1918, the company began as a general contractor. From its beginnings as a builder and seller of homes in Union County, New Jersey, the company has evolved into a full-service commercial real estate business, while maintaining a localized geographic focus in the same area where the business started. As the ports of Elizabeth and Newark and Newark Airport grew and prospered, Elberon continued to develop and own a portfolio of commercial real estate in close proximity. Through the past several decades, tenants have included General Motors, Kraft Foods, Wakefern Food Corp (Shop Rite), Federal Express, DHL and the United States Postal Service. Presently, Elberon Development owns and manages a portfolio of approximately two million square feet, much of which consists of warehouse space in Elizabeth, New Jersey, within two miles of either the airport or the port. Learn more at www.elberon.com.
About The Avidan Group
The Avidan Group (TAG), an affiliate of Avidan Management, is a family-owned and operated real estate company with deep roots in northern New Jersey. In business for more than 40 years, the company has been involved in all aspects of real estate development including construction, acquisition, financing, leasing and day-to-day operation with its former three-million-square-foot portfolio. While maintaining its core beliefs and experience, the focus and direction of Avidan has evolved through TAG with a new expanded mission and vision for the future. Expanding into other areas towards the development of new relationships, TAG is dedicated to being at the forefront of industry trends that strongly position their team to meet the needs of today’s modern companies. The company’s focus is primarily on multi-purpose facilities, which are comprised of big-box, refrigerated and flex buildings.
About The Provident Bank
The Provident Bank, (www.providentnj.com) a community-oriented bank offering “commitment you can count on” since 1839, is the wholly owned subsidiary of Provident Financial Services, Inc. (NYSE:PFS), which reported assets of $8.75 billion as of June 30, 2015. With $5.8 billion in deposits, The Provident Bank provides a comprehensive suite of financial products and services through its network of branches throughout northern and central New Jersey and eastern Pennsylvania. The bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.