Industrial portfolio in New Jersey’s Middlesex County refinanced

MORRISTOWN, N.J., Jan. 13, 2022 – JLL Capital Markets announced today that it has arranged a $16.1 million refinancing for a four-property industrial portfolio totaling 389,501 square feet within the Raritan Center Business Park in Edison, New Jersey.

JLL worked on behalf of the borrower, Summit Associates, Inc. (SAI), to place three separate 12-year, fixed-rate, non-recourse loans with two different life company lenders.

The portfolio includes buildings located at 135 Raritan Center Parkway, 115 Newfield Avenue and 87 and 97 Sunfield Avenue. The single-story, multi-tenant buildings are 93 percent leased to a diverse tenancy in the manufacturing, advertising, engineering, construction, healthcare and financial sectors.  Additionally, 97 Sunfield is home to the 155,000-square-foot New Jersey Convention Center. With clear heights ranging from 14 to 30 feet, the portfolio features 26 dock-high doors, three drive-in doors, ample parking and office space.

Located within the Raritan Center Business Park in Edison, the portfolio is in a premier logistics location that provides direct access to New Jersey’s most densely populated residential and commercial areas, including the New York City and Philadelphia MSA’s. Tenants have the ability to reach one-third of the U.S. population within 24 hours due to the property’s immediate access to major thoroughfares, including the New Jersey Turnpike, the Garden State Parkway, Interstate 287 and US Route 1

The portfolio is part of the Exit 10 Industrial submarket, which is one of the tightest industrial markets in the state. JLL Research shows vacancy rates were just 0.8 percent at the end of the third quarter of 2021, which is significantly lower than the average New Jersey Industrial market vacancy rate of 1.7 percent. Given that year-to-date completions for new industrial product in this submarket is only 1.9 million square feet with less than 500,000 square feet under construction, industrial space in this submarket is extremely sought after by investors and tenants alike.

The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Michael Klein, Director Max Custer and Associate Ryan Carroll.

“Raritan Center Business Park continues to demonstrate outstanding fundamentals within the industrial property sector,” Klein said. “As a result, we were able to compile substantial interest amongst the lending community which allowed SAI to capitalize on the historically low interest-rate environment.”

“Both life company lenders performed exceptionally and were able to efficiently navigate a tight closing timeframe for our client,” Custer 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 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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