Creation, J.P. Morgan Land $64M for New Jersey Industrial Project

PCCP LLC provided the floating-rate financing.

McClellan One
Rendering of the fully preleased McClellan One. Image courtesy of Creation

Creation, together with joint venture partner J.P. Morgan Asset Management, has obtained a $64 million construction loan for McClellan One, a 120,584-square-foot Class A industrial development in Newark, N.J. PCCP LLC provided the three-year, floating-rate financing for the project.

McClellan One is currently underway, with vertical construction scheduled to begin within the next 60 days, while delivery is planned for early 2025. The development is already preleased to Barsan Global Logistics, which will occupy the entire facility.

The industrial building will take shape at 192 McClellan St. and will feature 36-foot clear heights, 15 dock high doors, 87 trailer parking spots and freeway frontage. The 10-acre site provides access to New Jersey Turnpike while also being adjacent to Newark Liberty International Airport. Creation purchased the land, that initially served as a long-term parking space facility, in an off-market transaction in 2022.

McClellan One will be 6 miles from Linden, N.J., and from the Port of Newark’s Container Terminal, 12 miles from Jersey City, N.J., 14 miles from the Port of New York and within 34 miles of John F. Kennedy International Airport.

New Jersey leads for industrial pipeline size

Creation entered the Northeast region in late 2022, when it committed to invest $200 million in industrial developments across three sites. Except for McClellan One, the company’s local pipeline currently includes Baylis 495, a 103,500-square-foot facility in Melville, N.Y., and Old Nichols Commerce Center, a 178,000-square-foot project in Islandia, N.Y.

Among Northeastern markets, New Jersey led for industrial space under construction as of February, a recent CommercialEdge report shows. The metro had 7.1 million square feet in its pipeline, representing 1.2 percent of total stock. Philadelphia followed, with 6.2 million square feet (1.4 percent of total stock), while Boston had 2.9 million square feet (0.4 percent of total stock).

One of New Jersey’s ongoing developments is Lincoln Equity Group’s Belleville Logistics, a 204,407-square-foot, two-building logistics campus in Belleville, N.J. The company recently obtained a $54 million senior construction loan also from PCCP LLC.

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