JLL Capital Markets announced Sept. 14 that it arranged a $14.35 million refinancing for a three-property industrial portfolio totaling more than 430,000 square feet in the Raritan Center Business Park in Edison.
JLL worked on behalf of the borrower, Summit Associates Inc., to place three, uncrossed fixed-rate loans with terms ranging from 10 to 12 years with a correspondent life insurance company. Loan proceeds were used to retire existing debt and fund minor tenant improvements.
The properties within the portfolio consist of the 199,494-square-foot building at 45 Fernwood Ave.; the 159,550-square-foot building at 110 Newfield Ave.; and the 74,925-square-foot asset at 450 Raritan Center Parkway. Built between 1980 and 1991, the properties have maintained near full occupancy and are currently 99% leased to 20 tenants.
Located in the heart of Middlesex County, Raritan Center Business Park serves as a key infill distribution point for the subject’s tenants to reach both the New York City Metropolitan Area and southern New Jersey markets. The location provides tenants with direct access to a robust highway network that includes the New Jersey Turnpike, the Garden State Parkway and Interstate 287, each of which is less than 3 miles away. Additionally, the location provides tenants access to 19 major U.S. markets and nearly 33% of the U.S. population within 24 hours’ drive time.
JLL Research’s Industrial Tenant Demand Study details the strength of the New Jersey Industrial market, which continues to demonstrate robust demand, heavily driven by port activity and e-commerce sales. Port Elizabeth-Newark is less than 25 miles from the properties, which has helped tighten market vacancy in Raritan Center Business Park to less than 1%, while average asking rents have exceeded $11 per square foot.
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Michael Klein and Director Max Custer.
“We are pleased to have helped Summit Associates, Inc. with another set of long-term loans to refinance properties within the Raritan Center Business Park,” Klein said. “The strategic timing of rate lock and execution allowed the borrower to capitalize on a historically low interest rate environment while avoiding early prepayment fees.”