Bridge Industrial secures $64M financing for Newark spec project

Listen to this article

A new industrial property is coming to Newark under Bridge Industrial LLC‘s plans to build a 211,388-square-foot Class A distribution center.

JLL Capital Markets said June 5 it arranged $64.3 million in financing on behalf of the vertically integrated real estate operating company and investment manager. The three-year construction loan, which was secured through an affiliate of global real estate investment management firm Heitman LLC, will fund the development of Bridge Point 15E at 17 Blanchard St. in the state’s largest city.

The JLL Debt Advisory team representing the borrower was led by Senior Managing Directors Michael Klein and Jon Mikula and Vice President Michael Lachs.

The “best in class” project is less than a half-mile from Exit 15E of the New Jersey Turnpike and under 3 miles from Newark Liberty International Airport and the state’s busy port facilities. The region is one of the most in-demand logistics strongholds nationwide.

According to JLL, North Jersey boasts a vacancy rate of 2%, while the Port submarket comes in at 1.86%. Nationwide, the sector boasts a 3.8% vacancy rate.

In its first quarter 2023 Industrial Insight, JLL said the number of square feet that broke ground (3.8 million) during the period represented a 38.9% dip from the trailing eight quarter average.

“We are pleased to have helped Bridge Industrial secure construction financing for another spec industrial development project,” said Klein. “Construction financing for spec industrial developments is challenging given current market conditions, but there is still a market for well-located projects being built by experienced developers such as Bridge.”

Klein has first-hand knowledge of that experience; last October, he was part of a team that helped to arrange $33 million in construction financing for Bridge Industrial’s 314,413-square-foot warehouse and distribution center project, Bridge Point East Hanover.