Principal Real Estate Investors Lends $42M in NJ Warehouse Acquisition
Los Angeles’ Cohen Asset Management is funding its acquisition of an Edison, N.J. industrial warehouse with a $41.5 million loan from Principal Real Estate Investors, according to an announcement from HFF, which brokered the debt deal.
The 10-year, fixed-rate loan funds the purchase of a 507,000-square-foot distribution center about 35 miles southwest of New York City. The warehouse, at 549 Mill Road, has 36-foot ceilings, with 101 loading docks and parking for more than 300 cars and trucks.
HFF’s Jon Mikula and Andrew Zilenziger linked up the lender with Cohen Asset Management, which maintains an industrial portfolio that spans California, Texas, Pennsylvania and Arizona in addition to its New Jersey holdings.
“Our history with the project goes back to 2014, and since then, industrial product like this in and around the Exit 10 submarket [has been] in high demand,” Mikula said in a statement, referring to the Edison property’s location along the New Jersey Turnpike.
Indeed, the junction is such an important industrial crossroads that one commercial broker, Bill Hettler of Logistic Realty, named his website after the intersection: njturnpike10.com. Its prominence is thanks to the fact that the junction has easy access to every major New Jersey highway, he wrote. By his count, Edison tallies more than 42 million square feet of industrial space, with modern Class-A properties generally leasing for between $6.75 and $7.25 per square foot.
Representatives from Cohen Asset Management and Principal Real Estate Investors did not immediately respond.