Plans for McClellan One at the northwest corner of Route 1 and McClellan Street in Newark call for 120,584 square feet of industrial space. — Courtesy: Creation
By Joshua Burd
A joint venture is set to begin construction on more than 120,000 square feet of new industrial space in Newark after securing a $64 million construction loan for the project.
The developers, Creation and J.P. Morgan Asset Management, say PCCP provided the three-year, floating-rate financing for the project at the northwest corner of Route 1 and McClellan Street. That’s paved the way for the start of site work this week at the 10-acre tract, which is directly adjacent to the airport, where plans call for a 120,584-square-foot facility with 87 trailer stalls.
Creation added that it has preleased the entire building to Barsan Global Logistics, an integrated firm with more than 100 logistics centers in 51 counties. Vertical construction will begin within the next 60 days, with completion slated for February 2025.
Cushman & Wakefield’s John Alascio, Rob Rubano, Brian Share, TJ Sullivan and Chris Meloni represented the borrowers.
“The start of construction at McClellan One signals a significant milestone for Creation, now paving the way for our growth in New Jersey and our overall expansion across the Northeast,” said Bob Agahi, who cofounded Creation with David Sellers. “This site is a once-in-a-decade find and a flagship location within our industrial portfolio. With financing now in place and a pre-lease executed with a best-in-class global logistics company, we’re proud to set a new standard for Class A industrial development in Newark.”
Creation acquired the site in 2022 in an off-market acquisition, noting that the former owner operated a long-term parking facility at the property. The parcel is now set to become a warehouse that’s minutes from Port Newark-Elizabeth, the New Jersey Turnpike and New York City.
With dual headquarters in Phoenix and Dallas, Creation entered the Northeast in late 2022 as the company began $200 million in industrial developments across three sites in New York and New Jersey, according to a news release. The sites include McClellan One and two projects in New York — Baylis 495 Business Park in Melville and Old Nichols Commerce Center in Islandia.
Creation also expects to expand its presence in New Jersey with several predevelopment projects already underway, the firm said. Its existing portfolio includes $4.5 billion of ground-up projects in Arizona, Texas, California, Tennessee, New York and New Jersey.
