329 Wyckoff Mills Road in Hightstown — Courtesy: Cronheim Mortgage
By Joshua Burd
The occupier of a newly built, 635,000-square-foot distribution center in Hightstown has acquired the property with the help of a $50 million loan.
According to Cronheim Mortgage, which arranged the debt, an affiliate of Modway Inc. is using the permanent financing to support its purchase of 329 Wyckoff Mills Road. An undisclosed lender provided the $49.5 million loan, which has an 80 percent loan-to-cost ratio and a rate of 3.46 percent, with an interest-only structure for the entire 10-year term.
The nearly four-year-old building serves as Modway’s headquarters and distribution center for its omnichannel furniture business.
“Modway is a fast-growing company and was able to acquire this property at a reasonable price,” said Andrew Stewart, who was part of the Cronheim debt placement team. “We recognized that and were able to help them save significant money by providing a high leverage, interest-only solution at an attractive rate that allows them the cash flow and flexibility to grow their business with a modest fixed-rate payment stream.”
Stewart represented the borrower alongside Dev Morris and Allison Villamagna from the Chatham-based advisory firm. They noted that Modway, an 11-year-old company, imports and wholesales home furnishings to various chain stores, online sellers and internet-based distribution channels, while also selling furniture to the public through web-based sales streams.
Exeter Property Group delivered the 634,495-square-foot Hightstown facility in 2017, capitalizing on a location alongside the New Jersey Turnpike and just off Exit 8. The property has 36-foot clear ceiling heights, 111 dock doors, 153 trailer spaces and 271 car parking spaces.