State Farm Refis New Jersey Industrial Park With $50M Loan
By Andrew Coen February 24, 2023 1:55 pm
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Greek Development has sealed a $50 million debt package from State Farm Life Insurance Company to refinance a New Jersey industrial property, property records show.
State Farm provided the permanent loan on Greek’s Logan North Industrial Park project in Logan Township, N.J., according to Gloucester County property records. The loan retires existing construction financing from Wells Fargo on the 3.2 million-square-foot development’s Building A, Building F and Trailer Lot G facilities.
“Despite recent volatility, lenders recognize the incredible value that these industrial properties offer, and the role they play in keeping pace with the continued growth of e-commerce,” David Greek, managing partner at Greek Development, said in a statement.
JLL (JLL)’s Michael Klein, Jim Cadranell, Gregory Nalbandian and Ryan Carroll arranged the transaction.
The industrial park’s 164,317 square-foot Building A is fully leased to logistics company Shearer Holdings. Building F and Lot G comprise a combined 326,937 square feet on more than 11.36 acres and are fully leased to last-mile delivery company LaserShip.
Construction is underway on the third phase of Logan North, which will consist of two buildings, 188 parking spaces, 58 trailer parking spots and a 475,488 square-foot cross dock.
“Our team is proud and grateful to be partnering with one of the largest life insurance companies on this transaction,” Alex Motiuk, director of acquisitions at Greek Development, said in a statement. “Since acquiring the site in 2018, our ongoing success in Logan North’s development has continued to reaffirm our vision for this project. We are confident that it will help meet the demand from top occupiers for truly last-mile, best-in-class warehouse facilities.”
Located at 700 Crossroads Boulevard, the industrial park is situated in Southern New Jersey bordering Route 322, just north of Interstate 295. The facility is 14 miles from Philadelphia International Airport and less than 20 miles from the Port of Philadelphia.
Greek’s industrial development pipeline also includes the Linden Logistics Center in Linden, N.J, and 900 Wheeler Way in Langhorne, Pa. in partnership with Principal Real Estate. The joint venture secured a $32 million construction loan from Provident Bank for the Pennsylvania project in suburban Philadelphia last August.
“Despite the ongoing turbulence in the capital markets, life insurance companies continue to serve as the best source of long-term funding to best-in class warehouse/distribution facilities in last mile locations,” JLL’s Klein said in a statement.
Officials at State Farm did not immediately respond to a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
