Avenel cold storage facility inks $36M refrigeration refinancing

April 30, 2019 04:40PM

HFF arranged $35.75 million in financing last week for a fully-leased, 182,154-square-foot cold storage facility in Avenel, according to GlobeSt. HFF represented developers Advance Realty Investors and Greek Development in securing the 10-year, fixed-rate loan that will retire construction debt and return capital to the joint venture. The Woodbridge Township property, located at 275 Blair Road, was a built-to-suit facility for Preferred Freezer Services constructed in 2015. RE-NJ noted that Preferred Freezer Services is the world’s third-largest provider of refrigerated warehouses. The joint venture-owned property is located 6 miles from the Goethals Bridge to Staten Island and 10 miles to Port Newark and Newark Liberty International Airport. While HFF declined to identify the lender providing the loan, GlobeSt noted that at $200 of loan per square foot the deal is one of the highest loan valuations for a cold storage facility. According to research from JLL, which is poised to absorb HFF in a $2 billion deal, average asking rents in the Exit 12 New Jersey Turnpike submarket (25 miles from the Lincoln Tunnel) reached $9.81-per-square-foot for warehouse and distribution space during the first quarter. JLL also noted that the Exit 12 submarket had an overall net absorption of -256,175 square feet, while vacancy remained at 2.2 percent. [GlobeSt]