C&W Arranges $41M in Financing for Industrial Portfolio in Central New Jersey

On Mar 1, 2019

Cushman & Wakefield has successfully arranged $41 million in acquisition financing for Ivy Realty in their purchase of a 768,244-square-foot industrial portfolio located in Warren and Somerset. The financing was provided by BBVA Compass, which funded both the acquisition and future renovation and leasing related costs.

A Cushman & Wakefield Equity, Debt and Structured Finance team of John Alascio, Sridhar Vankayala, and Zachary Kraft represented Ivy Realty in the transaction.

“This transaction represented a compelling financing opportunity for lenders given the sponsorship and value-add profile,” said John Alascio of Cushman & Wakefield. “We received strong lender feedback, but eventually chose BBVA as they demonstrated a clear understanding of the opportunity and business plan. They provided attractive terms that were flexible to match with the sponsor’s future needs.”

“Lenders currently have a deep appetite for industrial assets, particularly when its combined with strong sponsorship and a clear value-add business plan, all of which were available in this unique transaction,” added Sri Vankayala.

The 768,244-square-foot, seven-property portfolio is comprised of three industrial buildings, two flex/lab buildings and two office buildings located in two separate “pods.” One pod is located in Warren and is comprised of the flex/lab and office buildings including 7 Powder Horn Drive, 30 Technology Drive, 40 Technology Drive and 45 Technology Drive. The second pod is located in Somerset and is comprised of the industrial buildings including 1 Riverview Drive, 50 Randolph Road, 100 Randolph Road and a 5-acre land parcel.

Ivy Realty plans to re-brand the portfolio and drive leasing velocity through extensive capital improvements and a new marketing campaign. For over 20 years, Ivy Realty has been one of the most esteemed owners and developers in the northeastern United States. Having acquired over 11 million square feet of commercial real estate assets worth more than $1.5 billion, Ivy Realty has been effective in generating strong returns through superior market knowledge, value-add relationships and their “on the ground” presence.

The seven buildings are conveniently located near major roadways and multimodal mass transportation options. The properties in Somerset are located just one mile from Exit 12 of I-287, while the assets in Warren are located off Exit 36 of I-78.

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