Keystone Equities Provides $61M Refi for IOS Repositioning Site in Newark

KS Group has secured $60.5 million to refinance a 51-acre industrial site in Newark, N.J., that will be repositioned as an industrial outdoor storage property, Commercial Observer can first report. 

Keystone Equities provided the debt, structured as a senior bridge loan, marking $660 million in capital the firm has deployed since August 2023, the firm noted in a release. 

CBRE’s Shlomo Weissberg and Eli Klapper arranged the transaction. 

Jonathan Zamir, founder and CEO of Keystone Equities, noted in a statement that the site is currently under active environmental remediation and still hadn’t secured a certificate of occupancy before closing, which led to several “traditional lenders” to decline to underwrite the risk associated with the deal. 

“This was a deal that required real diligence. We dug in, structured around the risks, and found a solution that works for both us and  the borrower,” he said. “That’s where Keystone adds value.” 

Located at 151 Raymond Boulevard in Newark, the industrial site is a former PSEG property that holds proximity to Port Newark-Elizabeth and New York City. 

The new IOS site will include parking for both trucks and trailers, a container garage for shipping, and electric vehicle and solar charging stations. 

CBRE noted in recent reports that IOS vacancy in Northern New Jersey stands at 2.5 percent, while rents have grown 123 percent since 2020. 

Brian Pascus can be reached at bpascus@commercialobserver.com.