HFF Arranges $12.2 Million Financing for Single-Tenant Industrial Warehouse in West Caldwell

On Jul 17, 2014

HFF has arranged a $12.2 million financing for 5 Henderson Drive, a 210,530-square-foot, single-tenant industrial print facility and warehouse in West Caldwell.

HFF worked on behalf of the borrower, The Hampshire Companies, to secure the five-year, fixed-rate financing through Lakeland Bank.

Five Henderson Drive is leased to R. R. Donnelley to serve as its Mid-Atlantic digital print facility. Donnelley, a worldwide leader in printing and marketing solutions, recently executed a 10-year lease extension.  The tenant has maintained a presence in the building since 1999, which is fully climate controlled, features a specialized humidity system in the production area and has 32’ ceiling heights in the warehouse.

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

“The Hampshire Companies retained HFF to help them unlock the value they created by acquiring the building with minimal lease-term left and then extending the tenant for a new 10-year term,” Mikula said.

“The borrower was seeking a non-recourse loan with as little structure as possible as a result of the building’s single tenancy,” Klein added.  “The property was well received in the debt market, but Lakeland Bank really understood the submarket and the tenant’s business model and was able to provide a deal that best met Hampshire’s needs.”

The Hampshire Companies is a full-service, private real estate firm with equity in assets valued at more than $2.5 billion, based in Morristown.  The Hampshire Companies is a vibrant, dynamic organization that combines creative vision and superior execution, thereby enabling it to create and enhance value in real estate investments. Learn more at hampshireco.com.

 

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