Construction for a new cold storage facility financed for $34M
JLL Capital Markets arranged a $34M loan for the development of a new cold storage facility built-to-suit for FreezPak Logistics near New York.
MORRISTOWN, N.J., Feb. 23, 2021 – JLL Capital Markets announced today that it has arranged a $34 million construction loan for the development of a new, 140,000-square-foot cold storage facility within the Port Industrial submarket on the border of Elizabeth and Newark, New Jersey.
JLL worked on behalf of the developer, Elberon Development Group and Fidelco Realty Group, to place the 22-year construction to permanent loan with one of JLL’s correspondent insurance company relationships.
The refrigerated warehouse will be built-to-suit for FreezPak Logistics, a New Jersey-based third-party logistics company. This will be FreezPak’s fifth New Jersey location. The facility will feature 10.5 million cubic feet of space, 18 docks and 30,000 pallet positions while also providing excess trailer parking.
The building will be constructed on a 7.85-acre site at 1029 Newark Ave. on the border of Elizabeth and Newark just four miles from Newark Liberty International Airport and Port Newark-Elizabeth. Additionally, the suburban New York City location places the facility in a dense, infill area that can service a diverse consumer base.
Cold storage has become a priority in the wake of the COVID-19 pandemic, especially in dense population centers like the New York Metropolitan area where more than 20 million residents live and where the demand for fresh food and online groceries is high and will continue to remain constant. JLL Research in its Cold storage in the post-COVID economy whitepaper detailed key trends across the cold storage sector, including the importance of keeping the food supply chain moving, especially in the middle and last mile. There is an increase in third party-logistics companies, like FreezPak, servicing the Food and Beverage sector.
The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Michael Klein and Jon Mikula and Director Max Custer.
“JLL is thrilled to have represented the joint venture between Elberon Development Group and Fidelco Realty Group on this transaction,” said Klein. “The borrower was looking to secure construction financing and take advantage of today’s historically low long-term interest rates.
“The strong reputation of the two sponsors in the market, the premier location of the site and a long-term lease from a credit-worthy tenant enabled us to secure a very attractive long-term construction perm loan from one of our correspondent life insurance companies,” he added.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Elberon Development Group
Elberon Development Group, a third-generation family business, has been developing, constructing, owning, and managing commercial real estate for nearly a century. Founded by David O. Evans in 1920, the company began as a general contractor and has evolved into a full-service commercial real estate company.
Elberon Development Group owns and manages a portfolio of approximately 2.5 million square feet, much of which consists of warehouse space in Elizabeth, New Jersey, within a two-mile radius of the Ports of Elizabeth and Newark and Newark International Airport. The portfolio includes several of the same properties originally developed by the founder of the company, and several others either developed or acquired from third parties over the past 15 years.
About Fidelco Realty Group
Fidelco Realty Group is a real estate investor, developer and manager with substantial interests in various classes of real estate including office, industrial, residential, retail and mixed-use properties. For more than 30 years, Fidelco has been one of the city of Newark’s most active developers and investors. In addition, Fidelco owns several million square feet of warehouse and commercial space and interests in thousands of apartment units outside of Newark.