Advance Realty Investors and Greek Development have received $103.5 million in construction financing for the first two buildings at their planned 10-building, 3.2 million-square-foot, Class A Logan North Industrial Park in Logan Township, Gloucester County, N.J. Cushman & Wakefield served as the borrowers’ exclusive adviser in procuring the funding.
The property is along Route 322 in Logan Township, at Exit 11 on I-295 and only a mile from the Commodore Barry Bridge connecting New Jersey with southeastern Pennsylvania.
A Cushman & Wakefield Equity, Debt & Structured Finance team of John Alascio, Sri Vankayala, Chuck Kohaut, T.J. Sullivan and Maya Steinberger represented the borrowers.
The first asset to be developed at Logan North will be Building H. The facility is 100 percent preleased to Target, which will use the property to fulfill online orders (about 40 percent of its capacity) and restock retail centers (about 60 percent of its capacity). Building H received a $69 million construction loan from Wells Fargo.
The second structure is Building E, a build-to-suit cold storage facility that’s fully preleased to Lineage Logistics. The building will total 189,889 rentable square feet and will be operated by Preferred Freezer Services, a Lineage subsidiary. The property will feature 103 parking spaces, 44 trailer spaces and 20 dock doors. Building E received a $34.5 million construction loan from Provident Bank.
Hanging in so far
Logan North is barely a mile and a half from the Pureland Industrial Complex, the state’s largest and one of the nation’s biggest industrial parks.
Last month, BentallGreenOak purchased a 925,000-square-foot distribution warehouse in Somerset, N.J., in the Rutgers–New Brunswick metro, from Crow Holdings International for $164 million. The project, initially speculative, is fully leased to LG Electronics USA.
Gloucester County has about 29.6 million square feet of the 341.8 million-square-foot metro Philadelphia industrial space inventory, according to a second-quarter report from CBRE. Only 4.8 percent of industrial space in the county was vacant as of the second quarter, nearly 2.1 million square feet of space was under construction, and year-to-date net absorption was 620,000 square feet. The average asking triple-net lease rate in Gloucester County stood at $5.63, also according to CBRE.