HFF announces $28.5M refinancing for Class A industrial warehouse in North New Jersey
FLORHAM PARK, NJ – June 14, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $28.5 million refinancing for 350 Clark Drive, a three-building Class A industrial warehouse facility totaling 443,030 square feet in the North New Jersey community of Mount Olive, New Jersey.
The HFF team worked on behalf of the borrower, Commercial Realty Group (CRG), to place a 10-year, fixed-rate loan with John Hancock Real Estate Finance Group. Additionally, HFF will service the loan.
The industrial facility at 350 Clark Drive was originally constructed to house the headquarters of Calvin Klein Cosmetics and is now 97.1 percent leased to office and industrial tenants. Divided into three contiguous components called Building A, B and C, the property features 24- to 30-foot clear heights, 26 loading docks, two drive-in doors, 42- by 34-foot column spacing, 20,000-square-feet of freezer space and 22.9 percent office finish. Situated on 20.2 acres in the Route 80 Corridor Industrial submarket, 350 Clark Drive is within the International Trade Center (ITC), a master planned industrial park located along Interstate 80 and one of five designed Foreign Trade Zones (FTZ) in New Jersey. The property’s Interstate 80 location provides access to the rest of Northern New Jersey in addition to New York City, eastern Pennsylvania, New York State and the Northeast and the Mid-Atlantic regions.
The HFF debt team representing CRG included senior managing director Greg Nalbandian and analyst Tim Mason.
“The HFF investment advisory team sold this asset to CRG less than three years ago,” Nalbandian said. “In this short period of time, CRG increased the NOI by more than $1 million through aggressive lease-up of vacant space, renewing tenants at market rents and reduction of operating costs. CRG also completed a building upgrade package and remedied deferred maintenance. The substantial value creation allowed CRG to execute its value-added neighborhood model for a full cash out of the sponsor’s equity, which they intend to redeploy into other value-add opportunities.
HFF and Holliday GP Corp. are licensed New Jersey real estate brokers.
About Commercial Realty Group
The Commercial Realty Group is a full-service real estate operating company with a 40+ year history of providing high-quality office and industrial space in Morris, Essex, Somerset and Middlesex Counties in Northern New Jersey. CRG possesses the in-house capability to acquire, finance, construct and manage office and light industrial properties. CRG’s main office is at 111 Littleton Road, Parsippany, New Jersey. CRG also operates an office in Boca Raton, Florida. For more information, please visit crg-realty.com.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.