Seafrigo Rendering

HFF Arranges $23.8M Financing for Development of Cold Storage Facility in Elizabeth

Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $23.8 million in construction financing for a 138,642-square-foot, state-of-the-art freezer warehouse in Elizabeth.

HFF worked on behalf of the developer, a partnership between Elberon Development Group and The Avidan Group, LLC, to place the construction/perm loan with The Provident Bank.

The build-to-suit facility will feature 60’ clear heights, 18 temperature-controlled loading doors and 4,800 square feet (3.5 percent) of office space.  Due for completion in June 2016, the building will be 100 percent occupied by Seafrigo NA Cold Storage, Inc., a global logistics company for the food business that operates on several continents.  Located at 900 Fairmount Avenue in Elizabeth, the new facility is less than five miles from Newark Liberty International Airport and the port of Elizabeth/Newark and approximately one mile from the entrance to exit 13A of the New Jersey Turnpike (I-95).  This location is optimal for Seafrigo, since much of the product Seafrigo handles travels through either the port or Newark Airport.  The property is also in close proximity to an extensive highway network that allows ready access to Interstate 78, Interstate 278 to Staten Island and Brooklyn and State Highway Routes 1 and 22.  Additionally, an ample and qualified labor pool is available in the city of Elizabeth and surrounding municipalities.

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

“The borrower was looking to take interest rate risk out of the equation given the tenant’s 20-year lease and engaged HFF to secure a construction loan that would roll right into a long-term perm loan,” Klein said.  “The Provident Bank clearly understood this specialty use product as well as the tenant’s business model and was able to provide a loan that best met the borrower’s short and long term needs.”

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