Revere Capital Lends $76M on NJ Office and Industrial Portfolio
By Mack Burke October 18, 2019 9:20 amreprints
Dallas-based bridge lender Revere Capital has provided a $76 million loan to Supor Properties backed by a collection of office and industrial assets in Harrison, N.J., Commercial Observer can exclusively report.
The financing—which is the largest debt transaction originated by Revere’s 15-year history—covers five assets in Harrison, with the proceeds funding a mix of uses, including an acquisition, a refinance and $43.1 million in pre-development financing for planned construction and renovation efforts on one building in the bundle, according to information from Revere.
“This transaction began as an acquisition loan for one property and a refinance of parcel; Supor Properties agreed to add on additional industrial properties and renovation of the existing office building to [our] loan over competing bids of other…lenders due to confidence [in our] closing on all assets,” Revere Capital senior vice president Sybil Ellis, who originated the debt, said in a prepared statement.
Ellis added: “[this loan] shows our depth beyond that of a typical hard money lender as this was a creative, challenging transaction whereby both parties achieved their objectives and cemented a long-term relationship.”
The deal covered Supor’s acquisition of a roughly 48,000-square-foot flex office and industrial building—situated on three acres at 600 Guyon Drive—that is currently occupied by major electronics company Panasonic on a triple-net lease that’s set to expire in 2028.
The debt package also retires existing debt on a roughly 12-acre site at 1000 Frank E. Rodgers Boulevard, which is located adjacent to the recently redeveloped Harrison PATH Station and the Red Bull Arena soccer stadium; the next two properties included in the refinance are two industrial assets, the 307,907-square-foot 500 Supor Boulevard and the 193,667-square-foot 505 Manor Avenue. The pair of buildings are primarily utilized for heavy equipment storage, according to Revere.
The $43.1 million in pre development financing covered an additional building on the site of 500 Supor Boulevard—401 Supor Boulevard—which comprises about 70,000 square feet of space for commercial use. Supor is planning a renovation of that property, according to Revere.
Harrison, N.J., once mainly considered an industrial hub, is rapidly expanding and growing in popularity with developers like Supor who have been, or currently are, building out fresh multifamily, retail and office products to leverage the area and its travel and entertainment options as an alternative to Manhattan and the rest of New York.
Separate from this financing from Revere, Supor is planning a sizable development on a lot that’s straddled by the refreshed train line as well as Red Bull Arena. The firm has proposed an eight-building, mixed-use complex that will feature ground-floor retail as well as office and residential space and a 4,200-space parking garage.
Supor Properties could not immediately be reached for comment.