Advance Realty Investors JV Lands $235M Refi

Linden Logistics Center. Image courtesy of Cushman & Wakefield

Advance Realty Investors and Greek Development have completed a $235 million refinancing of Buildings E and G at Linden Logistics Center, in Linden, N.J. Cushman & Wakefield was the ownership’s exclusive advisor in the transaction. The 10-year, fixed-rate loan was provided by Northwestern Mutual.

Buildings E and G are 480,844 and 840,203 square feet, respectively, and are fully leased to World Distribution Services and Peloton Interactive Inc. The two Class A facilities feature 40-foot clear heights, multiple cross-docked loading positions, drive-in doors and ample trailer and car parking.

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Linden Logistics Center is at 600 Linden Logistics Way, in New Jersey’s Port Industrial Market and is within 15 minutes of Newark International Airport, as well as within a 30-minute drive of multiple deepwater cargo ports.

Buildings E and G comprise the first phase of Linden Logistics Center, which will span eight buildings and more than 4 million square feet once completed.

In a prepared statement, Advance Realty Investors CEO Peter Cocoziello noted that the company is underway with the project’s second phase, which totals 1.6 million square feet in three buildings that are scheduled to deliver in the third quarter of 2022.

Since its founding in 1979, Advance Realty Investors has developed, acquired and repositioned real estate assets in the industrial, residential, life science, office and retail sectors, mostly in New Jersey. Advance currently holds a 20 million-square-foot portfolio across multiple asset classes.

Based in Central New Jersey, Greek Development focuses on industrial development in New Jersey and Pennsylvania. Since its founding in 1934, the company has developed more than 27 million square feet of space, primarily industrial, and currently operates a portfolio totaling 17 million square feet.

A Cushman & Wakefield Equity, Debt & Structured Finance team led by John Alascio, Chuck Kohaut, TJ Sullivan, John Spreitzer, Sebastian Sanchez and Zachary Smolev represented the borrowers.

Landlord heaven

Cushman & Wakefield also represented Advance and Greek in the summer of 2020, in connection with $103.5 million in construction financing for the first phase at the developers’ 3.2 million-square-foot Logan North Industrial Park in Gloucester County, N.J.

New Jersey’s industrial space market is seeing the triple-combo of vanishingly low vacancies, booming demand and steady rent growth, though industrial developers also face rising construction costs, according to a third-quarter report from JLL.

Warehouse and distribution space in Central New Jersey has a total vacancy of just 1.0 percent, on an inventory of 224.7 million square feet. Tellingly, year-to-date net absorption has been 4.9 million square feet, against total completions of less than 2.2 million. The average asking rent is $10.78, again according to JLL.