JP Morgan Lends $52M to Refi Two NJ Industrial Properties
J.P. Morgan has provided $51.5 million to refinance two New Jersey industrial buildings occupied by global fashion industry distributor Bergen Shippers Corp., according to brokerage Cushman & Wakefield, which arranged the debt.
The 10-year loan provided $44 million in senior debt to refinance two separate mortgages on Bergen Logistics’ warehouses at 5903 and 7300 Westside Avenue in North Bergen, New Jersey. A $7.5 million credit facility for the two warehouses was also included in the package.
The senior portion funded the cost of equipment and the construction of a third 115,000-square-foot logistics center to be built on a portion of the parking lot at 5903 Westside Avenue.
A Cushman & Wakefield equity, debt and structured finance team of John Alascio, Mark Ehlinger and TJ Sullivan arranged the debt for Bergen and were joined by C&W director Bonni Heller, who specializes in industrial leasing, according to the firm.
“We were able to leverage the tremendously strong debt capital markets environment for high-quality New Jersey industrial product proximate to New York City,” Alascio said in a statement. “Multiple groups offered to replace all of our client’s outstanding debt and become its new banking partner/mortgage lender. Ultimately, we negotiated this all-encompassing financing at highly attractive terms.”
The two warehouses at 5903 and 7300 Westside Avenue total 730,000 square feet and were originally constructed for Liz Claiborne in 1987, according to C&W. The asset at 7300 Westside Avenue is a one-story, 130,000-square-foot warehouse while 5903 Westside Avenue is a four-story, 600,000-square-foot property used as a fashion logistics center.
Bergen Logistics focuses primarily on the packaging and movement of goods within the fashion and lifestyle sectors; the company has six warehouses across North America. It occupies around 1.4 million square feet of industrial space and services 800 brands.
A spokeswoman for J.P. Morgan did not immediately respond to a request for comment. Officials at Bergen Logistics could not immediately be reached.