Efrem Gerszberg's 2020 Acquisitions has secured $654 million to refinance a piece of a New Jersey industrial development that's been attracting a flurry of leases in recent days.
Madison Realty Capital originated the mezzanine loan and mortgage, with NAMREKCA Capital arranging the deal.
The project is set to feature nine buildings, offering 4.1 million square feet of space. The refinancing covers five buildings in Phase 1 and leasing expenditures for two buildings in Phase 2. It will take three phases in total to complete the project, known as Central 9 Logistics Park, located in Old Bridge. Phase 1 has already been completed, which features roughly 2.1 million square feet of space. Two more buildings will be delivered during each of the final phases.
The site stands to benefit from its location, which is near major the Ports of Newmark and Elizabeth, as well as New York City and Newark Airport.
“Northern and Central New Jersey remain among the country’s most competitive industrial markets, driven by e-commerce and 3PL demand against limited new supply,” Josh Zegen, managing principal and co-founder of Madison Realty, said in a statement.
“Central 9 represents the type of industrial project we look for—a highly capable sponsor executing a multi-building industrial campus in a supply-constrained market with strong fundamentals. This financing demonstrates Madison’s ability to provide flexible capital solutions at scale across all development stages.”
In addition to the constrained supply, Gerszberg, (principal and president of 2020 Acquisitions), noted that tenants in the area are lured by tax expense "stability" thanks to the state's 30-year Tax PILOT.
Also, investor appetite is strong in the state, with a recent report from CommercialCafe noting that New Jersey has been seeing substantial upswings in year-to-date industrial sales.
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