New Jersey Warehouse Lands Refi

Harborview Logistics & Distribution Center. Image courtesy of JLL Capital Markets

Delta Equity Management has secured a refinancing loan for the Harborview Logistics & Distribution Center, a 195,723-square-foot industrial building in Bayonne, N.J.

JLL Capital Markets worked on behalf of the borrower to secure the fixed-rate loan, which was provided by Lincoln Financial Group.

The property previously landed a $37 million construction loan originated by Provident Bank in 2021, CommercialEdge data shows.

Harborview came online in 2022. The Class A facility sits on approximately 10 acres in an Opportunity Zone and features 40-foot clear heights, ESFR fire sprinklers, 46 dock doors, dock bumpers and levelers, two drive-ins, 32 trailer stalls and 149 parking spaces. The building is fully leased to HD Supply, a division of Home Depot.

The property is located at 69 New Hook Road, along the Hudson River, 6.2 miles from Jersey City, N.J., and 20 miles from New York City. The distribution center has immediate access to Route 440 and is in close proximity to the New Jersey Turnpike and Interstate 78. Port Newark-Elizabeth Marine Terminal is located within 8 miles, while Newark Liberty International Airport is 9.6 miles away.

The JLL team included Senior Managing Director Jon Mikula and Vice President Michael Lachs. The firm recently secured a $19.6 million financing for a warehouse and distribution facility in Carlstadt, N.J., on behalf of Penwood Real Estate Investment Management.

New Jersey’s industrial rent growth

A coastal market with various shipping ports, New Jersey registered an 8.7 percent increase in rent year-over-year as of February, versus a national increase of 6.9 percent, a CommercialEdge report shows. By comparison, California’s Inland Empire saw a 15.6 percent year-over-year increase, with Los Angeles and Boston registering 11.6 percent and 10.7 percent upticks, respectively.

The report showed that port markets had the largest spreads between the average rent for all leases and the rate of a lease signed in the last 12 months. In New Jersey, new leases averaged $13.79 per square foot, a $4.40 increase compared to the average for all leases, which clocked in at $9.39 in February. New Jersey’s vacancy rate was at 2.8 percent, lower than the national rate at 3.9 percent.