Morristown-based Commercial real estate services firm Cushman & Wakefield, Inc. announced that it served as exclusive advisor to seller Mack-Cali Realty and buyer Heritage Capital Group in arranging the $65.5 million trade of Totowa Commerce Center, located immediately off of the interchange of Interstate 80 and Routes 46 and 23 in Passaic County. Cushman & Wakefield also arranged $51.75 million in acquisition financing for Heritage Capital Group; Natixis Real Estate Capital provided the 10-year, fixed rate financing.
Totowa Commerce Center is a 13-building flex/industrial park totaling 508,028 square feet. Currently 90 percent leased, the property is home to nearly 48 tenants from various industries. It also features a 5.8-acre land parcel that allows for future development. The complex, which offers 12 flex buildings and one office building, lies in a densely populated infill location positioned just 20 miles west of New York City. It provides access to the tri-state area’s deep labor pool and the country’s greatest consumer base. The park, built in various stages throughout the late 1980s and 1990s, offers “last mile” access at affordable rents to tenants in need of functional office and warehouse space.
The Cushman & Wakefield Metropolitan Area Capital Markets Group team of Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Frank DiTommaso and Kyle Schmidt represented the seller and procured the buyer in this late third-quarter transaction. “The offering of this distinctive infill property drew significant interest,” Gabriel said. “Heritage Capital Group, exercising a 1031 Exchange, moved quickly and performed seamlessly for an outcome satisfactory to both parties.”
A Cushman & Wakefield Equity, Debt and Structured Finance team of John Alascio, Sridhar Vankayala and Andre Hass represented Heritage Capital Group in the transaction. Cushman & Wakefield successfully negotiated attractive loan proceeds, an interest only period and competitive pricing, all of which fulfilled the buyer’s needs.
“The property is a highly functional, well occupied, versatile flex/industrial park with excellent access, which checked all the boxes for lenders,” said Alascio, executive director of Cushman & Wakefield Equity, Debt & Structured Finance.
Sridhar Vankayala, director, added “The property features diverse tenancy with no real concentrated roll.”