HFF Arranges Financing for Class A Industrial Near Philadelphia
Loan proceeds will be used to return equity to the sponsorship, HFF says.
SWEDESBORO, NJ—Holliday Fenoglio Fowler arranged $9.1 million in financing for 405 Heron Drive, a 254,250-square-foot, class B industrial building in Swedesboro, NJ, near Philadelphia, PA.
HFF managing director Michael Klein and his team worked on behalf of Burton Real Estate to place a 10-year, fixed-rate loan with CUNA Mutual Group.
The loan will be added to an existing mortgage, collateralized by a three-building industrial portfolio that HFF placed with CUNA at the end of 2017, which also included nearby 509 Heron Drive. Burton purchased 405 Heron Drive as a value-add investment in November 2017. The property was 88-percent leased at the time of purchase, and loan proceeds will be used to return equity to the sponsorship. HFF will service the loan.
“CUNA Mutual Group had a firm understanding of the market, the property and BRE’s business plan for 405 Heron Drive from closing the previous transaction in 2017,” Klein says. “As BRE’s business plan came to fruition and more space was leased by existing tenants, it was a natural fit for CUNA to add this property to the portfolio.”
Situated on 25.38 acres, 405 Heron Drive is just off Interstate 295 and 16 miles from Philadelphia International Airport. The property is near the New Jersey Turnpike, providing easy access to the northern part of New Jersey and New York City. The single-story building was originally developed in 1991 and underwent renovations during 2017. 405 Heron Drive features 24 to 25-foot clear heights, nine dock-high doors and two drive-in doors.