HFF Arranges $12.2-M Construction Financing for New Jersey Self Storage Facility

On Dec 9, 2016

Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $12.2 million in construction financing to reposition a light industrial building into a 1,246-unit, Class A self storage facility in Totowa, New Jersey.

HFF worked on behalf of the developer, a joint venture partnership between Tulfra Real Estate and The Hampshire Companies, to place the construction loan with M&T Bank.  Tulfra purchased the larger 225,336-square-foot light industrial building, which was 46 percent leased at the time of purchase in February 2015 at a substantial discount.  Tulfra has since created significant value by subdividing the facility into three condominium units.

The future two-story self storage facility will comprise 1,235 climate- and 11 non-climate controlled units situated in 105,536 square feet of the light industrial building at 930 North Riverview Drive.  The facility will be situated at a signalized intersection along North Riverview Drive within a densely-populated residential and commercial area within the Passaic County Self Storage submarket.  The property’s location provides immediate access to Route 46, one of the primary east-west arteries and retail corridors in the region.  There are more than 90,640 residents living within a three-mile radius of the property, with a 1.25 percent growth to 91,775 residents projected by 2020.

The HFF debt placement team representing the borrower was led by senior managing director Jon Mikula and managing director Michael Klein.

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