Holliday Fenoglio Fowler, L.P. (HFF) announces a $23.35 million refinancing for a 204,000-square-foot industrial building located at 65 South Industrial Street in the Passaic County community of Clifton.
The HFF team worked on behalf of the borrower, a partnership between Tulfra Real Estate and The Hampshire Companies, to place the 10-year, fixed-rate loan with Citizens Bank. Loan proceeds will be used to refinance the existing construction financing on the property.
The one-building industrial facility recently received a multimillion dollar renovation that included raising the roof to provide a 27-foot ceiling height, new exterior skin, adding six new loading docks (for a total of 24), refinishing the warehouse floors, installing new lighting and sprinklers, adding new mechanical and electrical systems and fitting out 28,000 square feet of office space. The speculative redevelopment project is now fully leased to Damascus Bakeries, which will use the building as a second manufacturing facility that will accommodate the company’s growing production needs and its corporate headquarters. Damascus will lease its space for a 15-year term and will also take a 50-percent ownership interest in the borrower entity. Situated on 11 acres, 65 South Industrial Street is located just off Route 3 less than two miles from the Garden State Parkway and seven miles from the New Jersey Turnpike, providing superior access to the surrounding highways while benefiting from a deep labor pool of more than 630,000 people within a five-mile radius. The property is approximately 15 miles from Newark Liberty International Airport and the Port of Newark-Elizabeth. Additionally, the property is 21.5 miles from Manhattan.
The HFF team included senior managing director Jon Mikula and managing director Michael Klein.
“Citizens Bank quickly understood the benefits that the property’s extensive highway access, deep labor pool, proximity to New York City and unique building specs would provide the tenant and was able to provide an attractive rate,” Klein said. “Tulfra and Hampshire did a fantastic job redeveloping this asset into a modern manufacturing/distribution facility, and we were happy to help them put a long-term loan in place that caps off this spec redevelopment project.”Related Articles: