JP Morgan Chase Lends $57M on Taconic’s N.J. Industrial Acquisition

Taconic Partners has landed $46.6 million of acquisition financing to purchase a New Jersey industrial asset, Commercial Observer has learned.

J.P. Morgan Chase provided the loan on Taconic’s $74.3 million acquisition of a 360,000-square-foot Class B logistics facility at 1735 Jersey Avenue in North Brunswick, N.J., in a deal that closed Monday afternoon. The property was previously acquired for $18.9 million in late 2017 by a private investor as part of an off-market transaction  

JLL (JLL) arranged the financing with a capital markets team led by Evan Pariser and Aaron Niedermayer. The acquisition was brokered by JLL’s investment sales team of Jordan Avanzato, Marc Duval, Nicholas Stefans and Jason Lundy. 

Located on 17 acres about six miles west of the New Jersey Turnpike, the fully leased property has anchor tenants that include pallet distributor Kamps and furniture rental company Luxe Living Design. The facility is within the Central Jersey industrial market, which has experienced leasing momentum of late thanks to its access to ports, highways and major cities, according to Taconic. 

 “This acquisition represents a strategic opportunity to continue to expand our New Jersey industrial portfolio with a fully stabilized property at an attractive going-in yield with future upside,” Chris Balestra, president and chief investment officer at Taconic Partners, said in a statement.  “As we look to expand our industrial presence in the tri-state market, 1735 Jersey Avenue was a highly attractive, off-market opportunity in a submarket with strong tenant demand and low vacancy for Class B product.”

Officials at J.P. Morgan and JLL did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com