Granite Point Lends $52M in Industrial Sale-Leaseback Deal Near Newark Airport
A pair of East Coast developers, New York City’s Turnbridge Equities and Virginia’s Harbor Group International, has secured a $52.2 million loan to buy an industrial site in northern New Jersey, according to Cushman & Wakefield, which arranged the financing for the deal.
Granite Point Mortgage Trust, a publicly traded lender based in Manhattan, provided the mortgage loan. A spokeswoman for the company did not immediately respond to a request for comment.
The acquisition is part of a sale-leaseback agreement initiated by the former owner and a current tenant of the 540,000-square-foot Parsippany, N.J. warehouse, PNY Technologies, which makes computer accessories such as hard drives and data cables.
The building, at 100 Jefferson Road, stands near the intersection of Interstate 80 and Interstate 287 in an industrial park surrounded by homes, office developments and a non-denominational Christian church. PNY leases a quarter of the building, and Turnbridge and HGI said they will spend $4.5 million to bring the remainder of the warehouse up to snuff before leasing it, including improvements to the parking and loading areas, new office space and additional entrances to the facility.
John Alascio led the C&W team that arranged the financing, which also included Sridhar Vankayala, Mark Ehlinger and Noble Carpenter.
“The quality of this asset and strong institutional sponsorship led to a competitive bidding process and excellent terms put forth [by] Granite Point,” Alascio said in a statement. “Ultimately, Turnbridge and HIG were able to take advantage of a great opportunity in a market offering outstanding industrial fundamentals.”
The warehouse’s proximity to Newark Liberty International Airport, and the fact that some of the space has 38-foot ceilings, will help attract new tenants, according to C&W. Other teams from the massive real estate company represented the buyer and the seller in negotiating the property aspects of the transaction.
Representatives from HGI and Turnbridge did not immediately respond to inquiries about the acquisition price.
Investments like the ownership duo’s $4.5 million commitment to improve the Parsippany facility could become a more common feature of industrial transactions in some markets, because older warehouses might not be able to handle the requirements of the massive sloughs of e-commerce logistics that have come to support demand for the spaces. According to research from CBRE, the warehouse stock in northern New Jersey is America’s oldest. The average facility in the market is approaching its sixtieth birthday.