A rendering of the Logan North Industrial Park in Logan Township — Courtesy: Cushman & Wakefield
By Joshua Burd
A development team has secured more than $100 million in financing for the first two buildings in a planned 3.2 million-square-foot industrial park in Gloucester County.
Brokers with Cushman & Wakefield announced Friday that they represented the developers, Advance Realty Investors and Greek Development, in procuring the loans for the Logan North Industrial Park in Logan Township. The transactions will fund the construction of a roughly 1.3 million-square-foot property, which is preleased to Target, and a 189,889-square-foot, build-to-suit cold storage facility for Preferred Freezer Services.
Wells Fargo and Provident Bank are providing the loans for the respective projects, which will kick off the massive development at the intersection of Interstate 295 and Route 322.
“It is a true testament to Wells Fargo and Provident Bank in understanding the vision and value proposition of Logan North in our uncertain economic environment,” said Alexander Cocoziello, managing director of capital markets for Advance. “Our team could not be more pleased with the execution of Cushman & Wakefield and the broader sponsor team in these two deals.”
The Cushman & Wakefield equity, debt and structured finance team included John Alascio, Sri Vankayala, Chuck Kohaut, TJ Sullivan and Maya Steinberger. Wells Fargo is lending just over $69 million for what’s known as Building H, while Provident is providing $34.47 million for the cold storage facility.
“Buildings H and E at Logan North Industrial Park presented lenders with the unique opportunity to finance the construction of two Class A, pre-leased industrial facilities,” said John Alascio, an executive managing director with C&W. “The industrial market has continued to gain traction and demand far outweighs supply. We experienced a competitive process and, ultimately, Wells Fargo and Provident Bank set forth competitive terms that led to a seamless execution.”
In a news release, C&W said the initial building will be the first of 10 sites to be developed at Logan North Industrial Park. Target will use the facility as a flow center to fulfill online orders and restock retail centers, employing an estimated 1,300 workers in the process.
Construction of Building E will follow immediately, C&W said. Plans call for 103 parking spaces, 44 trailer spaces and 20 dock doors as part of a building that has been preleased to Lineage Logistics, Preferred Freezer’s parent company.
“With these two assets preleased, encompassing the first 1.3 million square feet of Logan North, our partnership is currently constructing Phase II of the development to meet continued demand in southern New Jersey,” said David Greek, director of acquisitions at Greek Development.