Suburban New York warehouse purchase financed with $10.25M loan

MORRISTOWN, N.J., Jan. 18, 2022 – JLL Capital Markets announced today that it has arranged $10.25 million in acquisition financing for the Nestle Waters Building, a 65,715-square-foot warehouse fully leased to Nestle Waters North America in the suburban New York City community of Jersey City, New Jersey.

JLL worked on behalf of the borrower, Cohen Asset Management, Inc., to place the five-year, fixed-rate loan through a correspondent life insurance company.

Completed in 1971, Nestle has occupied the property since 2008 and uses it as a mission-critical distribution outlet and manufacturing facility for its bottled water. The building features a 24-foot clear height, 11 dock-high doors, four drive-in doors, mezzanine storage, 15,000 square feet of office space, truck parking and ample vehicle parking stalls.

Nestle Waters Building is situated on 3.4 acres at 111-135 Thomas McGovern Dr. less than one mile from Interstate 78, which connects to the Holland and Lincoln Tunnels and provides the tenant immediate access into New York City. This ideal logistics location is also within 10 miles of Port Newark-Elizabeth and Newark International Airport.

According to JLL Research’s New Jersey Industrial Insight report for the fourth quarter of 2021, the New Jersey Industrial market’s unrelating demand has driven vacancy rates to a record low of 1.2 percent, which is down from the third quarter’s rate of 1.7 percent. With demand growing and vacancy at hyper low levels, JLL forecasts continued rent growth, which is currently sitting at $12.84 per square foot, up more than a dollar over last quarter.

The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Jon 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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