New York industrial demand continues to drive new developments
JLL Capital Markets arranged construction financing for Orange County spec distribution facility
MORRISTOWN, N.J., March 31, 2021 – JLL Capital Markets announced today that it has arranged construction financing for the development of a Class A, 76,000-square-foot, state-of-the-art speculative warehouse and distribution facility in Wallkill, New York.
JLL worked on behalf of the borrower, The Frassetto Companies, to place the three-year, fixed-rate loan with Columbia Bank. Loan proceeds will be used to construct the facility, which is expected to be completed by the end of the year.
The facility will be constructed on 5.1 acres at 103 Tower Dr. in Wallkill, a suburban New York City community positioned in western Orange County less than 1.5 miles from the “Golden Triangle” of interstates, an intersection of Interstates 84 and 18 and Route 6, named for its appeal to distribution and warehousing tenants. Additionally, the site is proximate to Route 1, which along with I-84, serves as arteries across the Hudson Valley region, connecting Orange County to various Upstate New York and Northern New Jersey counties in addition to Interstate 87, which is a strategic corridor between the New York City MSA and Montreal, the second largest metropolitan area in Canada.
The facility’s state-of-the-art features will include 36-foot clear heights, 10 overhead tailboard loading doors with dock levelers and mechanical openers, wide column spacing, ample vehicle parking, modern fire safety and lighting systems, steel tilt-up construction and appealing façade with masonry block. The majority of Orange County’s existing industrial inventory was built prior to 2000, a heavy concentration of which was built during the 1980s and 1990s.
Orange County has emerged as one of New York State’s fastest-growing counties due to its exceptional transportation infrastructure, affordably priced housing, top-ranked schools and amenities of the greater New York Metro region. Comprising more than 31 million square feet of industrial space, the local Orange County industrial submarket has seen steadily decreasing vacancy rates over the last five years. As of the fourth quarter 2020, the submarket had a vacancy rate of 4.5 percent, while average asking rents have increased by more than six percent annually over the last five years.
The JLL Capital Markets team representing the sponsor was led by Senior Managing Director Michael Klein and Director Max Custer along with Senior Managing Director Steven Klein.
“JLL is pleased to have arranged another loan on behalf of long-time client, The Frassetto Companies,” Michael Klein said. “This loan demonstrates that the lending market continues to build a comfort level with speculative industrial projects being constructed by experienced developers in strong locations throughout the New York Metropolitan area.”
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 The Frassetto Companies
The Frassetto Companies is one of the largest privately-owned real estate developers of high-tech office and industrial space in the Tri-State area. Family-owned and operated for over 60 years. The Frassetto Companies have built and managed more than five million square feet of space throughout New York and New Jersey. With a reputation for unparalleled excellence, The Frassetto Companies strive to provide their clients with superior quality in all sectors of commercial real estate property development, including acquisition, strategic planning, design, construction, leasing and management.
Their decades of superior tenant relationships have built an unshakeable reputation with clients that include Fortune 500 companies. When you choose The Frassetto Companies, you are selecting a team whose expertise and commitment always exceeds expectations.