A rendering of a new 140,000-square-foot cold storage building for FreezPak Logistics at 1029 Newark Ave. in Elizabeth — Courtesy: Elberon Development Group/Fidelco Realty Group
By Joshua Burd
A development team has secured a $34 million construction loan for a new 140,000-square-foot cold storage building on the border of Elizabeth and Newark, in a deal arranged by JLL.
The borrowers, Elberon Development Group and Fidelco Realty Group, are building the facility at 1029 Newark Ave. for Carteret-based FreezPak Logistics. An undisclosed insurance company is providing the 22-year construction-to-permanent loan, which was sourced by JLL senior managing directors Michael Klein and Jon Mikula and Director Max Custer.
“JLL is thrilled to have represented the joint venture between Elberon Development Group and Fidelco Realty Group on this transaction,” Klein said. “The borrower was looking to secure construction financing and take advantage of today’s historically low long-term interest rates.”
In a news release, JLL said the facility will feature 10.5 million cubic feet of space, 18 docks and 30,000 pallet positions, while also providing excess trailer parking. The 7.85-acre site is four miles from Newark Liberty International Airport and Port Newark-Elizabeth, sitting within a dense, infill area that can serve a diverse consumer base and the growing need for refrigerated and freezer space.
“The strong reputation of the two sponsors in the market, the premier location of the site and a long-term lease from a credit-worthy tenant enabled us to secure a very attractive long-term construction perm loan from one of our correspondent life insurance companies,” Klein said.
