$64.3M construction financing secured for Northern New Jersey spec industrial property
JLL Capital Markets led the financing efforts for Bridge Point 15E in Newark
MORRISTOWN, N.J. June 5, 2023 – JLL Capital Markets announced today that it has arranged $64.3 million in financing for Bridge Point 15E, a to-be-constructed, Class A, industrial property totalling 211,388 square feet in Newark, New Jersey.
JLL worked on behalf of the borrower, Bridge Industrial LLC (“Bridge”), to secure the 3-year construction loan through an affiliate of Heitman LLC (“Heitman”), a global real estate investment management firm.
Located at 17 Blanchard Street in Newark, New Jersey, this "best-in-class" distribution center is less than a half-mile from Exit 15E of the New Jersey Turnpike and under three miles from Newark Liberty International Airport and New Jersey Port facilities. Northern New Jersey is one of the most demanded distribution locations on the Eastern Seaboard with a market vacancy of 2.0%. The Port submarket is even tighter, with a 1.86% vacancy rate.
Over the last five years, demand in New Jersey's industrial market has grown significantly due to the rise of e-commerce and continuous record-breaking shipping container shipping volume at nearby port facilities. According to JLL's New Jersey Industrial Insight Q4 2022, New Jersey’s construction activity reached the highest level in the market’s history.
The JLL Debt Advisory team that represented the borrower was led by Senior Managing Directors Michael Klein and Jon Mikula and Vice President Michael Lachs.
“We are pleased to have helped Bridge Industrial secure construction financing for another spec industrial development project,” said Klein. “Construction financing for spec industrial developments is challenging given current market conditions, but there is still a market for well-located projects being built by experienced developers such as Bridge.”
“This submarket is one of the most in demand locations in the country,” added Mikula.
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 and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Bridge Industrial
Bridge Industrial (www.bridgeindustrial.com) is a privately-owned, vertically integrated real estate operating company and investment manager that focuses on the acquisition and development of Class A industrial real estate in the supply-constrained core industrial markets of Chicago, Miami, New Jersey, New York, Los Angeles/San Francisco, Seattle, and London. Since its inception in 2000, Bridge has successfully acquired and developed more than 72 million square feet of industrial buildings/projects valued at more than $15.2 billion.