ELIZABETH, NJ—Holliday Fenoglio Fowler arranged$23.8 million in construction financing for a 138,642-square-foot,state-of-the-art freezer warehouse in Elizabeth, NJ, that rollsdirectly into permanent financing to avoid interest raterisk.
HFF worked on behalf of the developer, apartnership between Elberon Development Group andThe Avidan Group, to place the construction/permloan with The Provident Bank. Due forcompletion in June 2016, the building will be 100 percent occupiedby Seafrigo NA Cold Storage, a global logisticscompany for the food business that operates on severalcontinents.
"Elberon and Avidan engaged usto find them a construction-perm loan," HFFdirector Michael Klein tells GlobeSt.comexclusively. "We marketed the deal to life insurancecompanies as well as local, regional, and national banks, and foundthem a deal that would allow them to take interest rate risk out ofthe equation by going ahead and having the opportunity to lock theperm piece as part of the construction loan, taking advantage ofthe long term lease that Seafrigo is bringing tothe table here. They're getting the construction loan and it rollsright into the perm piece."
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