Penwood Lands Financing for New Jersey Industrial Asset

305 Veterans Blvd. Image courtesy of JLL Capital Markets

Penwood Real Estate Investment Management has received $19.6 million in financing for a 109,775-square-foot warehouse and distribution facility located at 305 Veterans Blvd. in Carlstadt, N.J.

JLL Capital Markets worked on behalf of the borrower to secure the three-year, floating-rate loan from Tristate Capital Bank. Michael Klein, senior managing director with JLL, said in prepared remarks that despite the market’s current volatility, there is still liquidity for companies who own industrial assets in top markets such as the Meadowlands.

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Penwood acquired the facility through its sixth industrial fund in July 2022. Snow Joe sold the Class B asset for $44 million, according to CommercialEdge data. The property had previously changed hands in 2014 for $6.9 million.

Completed in 1966 on 3.5 acres, the one-story building features 22-foot clear heights, six dock-high doors, one drive-in door, ESFR fire sprinklers and a two-level office build-out component. The facility was vacant at the time of the purchase but the new ownership plans to lease it to prospective warehouse and distribution tenants. JLL Executive Managing Director Chris Hile, Senior Vice President Michael Palmeri and Vice Chairman David Knee are the property’s leasing agents.

The facility has access to several thoroughfares including the New Jersey Turnpike, Interstate 80 and state routes 3, 17 and 46. The property is 12 miles northwest of the Port of New York and New Jersey, with Newark Liberty International Airport just 15 miles away.

The JLL team that arranged the financing included Senior Managing Director Michael Klein, Director Max Custer and Associate Ryan Carroll.

New Jersey’s industrial market, back to pre-pandemic levels

New Jersey’s accessibility and proximity to ports contributes to its industrial market’s positive outlook. A JLL report shows that leases totaled 7.5 million square feet in the fourth quarter of 2022, a normalized volume, on part with the pre-pandemic activity.

According to the same report, the metro’s development activity reached historic heights, with 28.7 million square feet actively under construction and 10.3 million square feet of space delivered in the fourth quarter. One of the projects is Windsor 8 Logistics Center, a 325,710-square-foot Class A facility developed by Brookfield Properties, in East Windsor, N.J., slated for completion in the first quarter of 2024.

January kicked off with a major acquisition in Newark, N.J., as Hines purchased Newark Distribution Center, a three-property, 738,000-square-foot industrial portfolio. The assets traded for $127.4 million.