Aerial view of the properties in the Somerset, NJ, portion of the industrial portfolio Ivy Realty acquired Aerial view of the properties in the Somerset, NJ, portion of the industrial portfolio Ivy Realty acquired

WARREN AND SOMERSET, NJCushman & Wakefield arranged $41 million in acquisition financing for Ivy Realty’s purchase of a 768,244-square-foot industrial portfolio in Warren and Somerset, NJ. The financing was provided by BBVA Compass, which funded both the acquisition and future renovation and leasing related costs.

A Cushman & Wakefield Equity, Debt and Structured Finance team of John Alascio, Sridhar Vankayala, and Zachary Kraft represented Ivy Realty in the transaction.

“This transaction represented a compelling financing opportunity for lenders given the sponsorship and value-add profile,” says John Alascio of Cushman & Wakefield. “We received strong lender feedback, but eventually chose BBVA as they demonstrated a clear understanding of the opportunity and business plan. They provided attractive terms that were flexible to match with the sponsor’s future needs.”

“Lenders currently have a deep appetite for industrial assets, particularly when its combined with strong sponsorship and a clear value-add business plan, all of which were available in this unique transaction,” says Vankayala.

The 768,244-square-foot, seven-property portfolio is comprised of three industrial buildings, two flex/lab buildings and two office buildings located in two separate “pods.” One pod is in Warren, NJ and includes the flex/lab and office buildings at 7 Powder Horn Drive, 30 Technology Drive, 40 Technology Drive and 45 Technology Drive. The second pod is in Somerset, NJ, and includes industrial buildings at 1 Riverview Drive, 50 Randolph Road, 100 Randolph Road and a 5-acre land parcel.

Ivy Realty plans to re-brand the portfolio and drive leasing velocity through extensive capital improvements and a new marketing campaign.

The seven buildings are conveniently located near major roadways and multimodal mass transportation options. The properties in Somerset are located just one mile from Exit 12 of I-287, while the assets in Warren are located off Exit 36 of I-78.