New Jersey Spec Warehouse Lands Construction Loan
Penwood Real Estate Investment Management, along with its partner Metrix Real Estate Services, have received $ 12.7 million in construction funding for their upcoming 130 Commerce Center in Hamilton Township, NJ. sub-market.
A central bank provided the three-year non-recourse variable rate note. The JLL Capital Markets team that arranged the developer loan included Senior Managing Director Michael Klein and Managing Director Max Custer.
Located at 537 Route 130, the nearly 20-acre lot is located between Highways 195 and 95 (New Jersey Turnpike). The speculative project targets logistics and e-commerce companies as potential tenants and is expected to be completed in the third quarter of 2021. The property will offer 36 foot clear heights, 40 loading docks, fast bays and 50 parking spaces. for trailers, as well as ample parking.
About a year ago, the same developer duo teamed up with JLL to secure a $ 16.8 million construction loan for a similar speculative development located 10 miles north of the 130 Commerce Center project in the Lawrence Township, NJ. The 340,000 square foot building was that of Metrix. first development project, according to Klein.
The industrialist buys the retail business
The new structure will replace Shoppes at Hamilton, a retail hub that has operated at the location for more than a decade, according to Community information service. Two blocks forming part of the old center facing Route 130 will continue to house a bank and a restaurant.
The property, which is already zoned for industrial use, sits across from a 340,000 square foot warehouse leased by FedEx and purchased by Monmouth Real Estate Investment in 2018 for $ 85 million, according to data from CommercialEdge.
Last December, Cohen Asset Management Inc. took a 145,950 square foot bulk warehouse / distribution property positioned 2 miles north of the next 130 Commerce Center.
New Jersey industry remains healthy
The industrial sector has seen growth throughout 2020 in all of the country’s major markets, according to a recent report from CommercialEdge. The national average rate rose 4.8% year-over-year, reaching $ 6.38 per square foot. In December, New Jersey’s industrial vacancy rate stood at 3.6%, below the US average of 6.2%.
Last year ended with 228.4 million square feet of industrial space delivered across the country, a record for the century. While most of these projects were planned before the pandemic hit, the steady growth in rents coupled with steady demand reflects the good outlook for the sector.