Bridge Industrial Lands $64M for Newark Spec Project
The Class A distribution center will rise near the Port of New York and New Jersey.
Bridge Industrial has secured $64.3 million in financing for Bridge Point 15E, an upcoming 211,388-square-foot Class A industrial project in Newark, N.J. JLL negotiated on behalf of the developer in securing the three-year construction loan, originated by an affiliate of Heitman.
Located at 17 Blanchard St. near the Port of New York and New Jersey, Bridge Point 15E will be a Class A distribution center. Developed on speculative basis, completion is set for the third quarter of 2024.
To be situated on a 12-acre plot near Interstate 95 and the New Jersey Turnpike’s Exist 15E, the development will be within a 5-mile radius of Newark Liberty International Airport and Port Newark. The Northern New Jersey industrial market is in high demand, boasting a vacancy rate of 2 percent, according to JLL. The Port submarket is even more sought-after, with 1.9 percent rate.
The JLL Debt Advisory team of Vice President Michael Lachs, Senior Managing Directors Michael Klein and Jon Mikula worked on behalf of Bridge Industrial in closing the loan. In the current market conditions, obtaining construction financing for speculative industrial projects can be a challenge, said Klein, in prepared statements.
A leading industrial market
Despite economic uncertainty, the industrial sector kept its momentum in April, according to recent CommercialEdge data. New Jersey led the Northeastern industrial markets in terms of sales volume and price, with $473 million in traded assets at an average of $202.9 per square foot year-to-date through April.
Last month, the same JLL team also assisted Invesco Real Estate in landing construction financing for an upcoming industrial facility in New Jersey. Invesco, in joint venture with The Hampshire Co., received $34.5 million in construction financing for a 187,530-square-foot industrial project in Bogota.