BBVA Provides $41 Million in Acquisition Financing for NJ Industrial Portfolio
By Cathy Cunningham February 26, 2019 2:00 pm
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Ivy Realty has nabbed $41 million in financing from BBVA Compass for its purchase of a 768,244-square-foot New Jersey industrial portfolio.
Cushman & Wakefield (CWK)’s John Alascio, Sridhar Vankayala and Zachary Kraft negotiated the debt, which funds the acquisition as well as future renovation and leasing costs.
“This transaction represented a compelling financing opportunity for lenders given the sponsorship and value-add profile,” Alascio said in prepared remarks. “We received strong lender feedback, but eventually chose BBVA as they demonstrated a clear understanding of the opportunity and business plan. They provided attractive terms that were flexible to match with the sponsor’s future needs.”
“Lenders currently have a deep appetite for industrial assets, particularly when it’s combined with strong sponsorship and a clear value-add business plan, all of which were available in this unique transaction,” Vankayala added.
The seven-property portfolio includes three industrial buildings, two flex/lab buildings and two office buildings located in two separate “pods.”
The first pod comprises flex/lab and office buildings at 7 Powder Horn Drive, 30 Technology Drive, 40 Technology Drive and 45 Technology Drive in Warren, N.J. The second pod comprises a five-acre land parcel plus three industrial buildings at 1 Riverview Drive, 50 Randolph Road and 100 Randolph Road in Somerset, N.J.
With the acquisition complete, Ivy Realty now plans to rebrand the portfolio and drive leasing activity through extensive capital improvements at the properties.
Officials at Ivy Realty and BBVA did not immediately respond to a request for comment.
