Summit Associates Closes Financing for NJ Industrial Asset
JLL arranged the loan through a life insurance company.
Summit Associates Inc. has secured $13.8 million in permanent financing for a fully leased, 124,720-square-foot industrial facility at 111 Fieldcrest Ave. in Edison, N.J., according to Yardi Matrix. JLL Capital Markets arranged the loan from State Farm Insurance Co.
It’s the third time that JLL has arranged financing from State Farm for this building and borrower. According to Yardi Matrix, State Farm was the previous lender for a 2005 construction loan, followed by permanent financing in 2016.
The property is within Raritan Center Business Park, one of the Northeast’s largest master-planned business parks. Built on part of the former Raritan Arsenal, the park totals about 13 million square feet across more than 100 buildings on 2,300 acres.
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111 Fieldcrest was completed in 2006 on a 6.4-acre site and features a 32-foot clear ceiling height, 40-foot column spacing and nine dock-high doors with cutouts to accommodate 13 additional loading positions. The facility has about 117,220 square feet of warehouse space and 7,500 square feet of office space, with 111 parking spaces on site.
The asset is fully leased to Bentley Laboratories for a specialized manufacturing platform serving the beauty and personal care industry, according to JLL. The tenant has occupied the building since it was delivered and recently exercised its option to renew for another 10 years.
The property is located in Edison’s Exit 10 industrial submarket, offering rapid access to interstates 287 and 95, the New Jersey Turnpike, Route 440, U.S. Route 1 and the Garden State Parkway via King Georges Road. The location is 17 miles from the Port of New York and New Jersey’s Newark–Elizabeth marine terminals and 18 miles from Newark Liberty International Airport.
The JLL Capital Markets team that secured the financing was led by Senior Managing Director Michael Klein, Senior Director Max Custer and Analyst Kevin Badger.
New Jersey industrial stays strong
In a prepared statement, Klein described the Exit 10 submarket—and more specifically the Raritan Center Business Park—as a sought-after industrial submarket in New Jersey, with a 95 percent occupancy currently and 97 percent occupancy historically.
New Jersey is holding onto its position as a top industrial market, according to a June Yardi Matrix report, recording the nation’s second-highest industrial sales volume through April. Pricing remained among the top 10 U.S. industrial metros.
The state is also seeing an ample construction pipeline, with 7.4 million square feet of industrial space under construction across 25 facilities as of April, accounting for 1.2 percent of total stock. New Jersey’s overall vacancy of 8.8 percent was below the national average of 9.1 percent.
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