930 North Riverview Drive in Totowa — Courtesy: HFF
By Joshua Burd
HFF has brokered a $9.5 million loan to help a developer refinance and complete its redevelopment of a Totowa industrial building, the firm announced Thursday.
Working on behalf of Tulfra Real Estate, brokers with the firm secured the financing for the 91,297-square-foot space at 930 North Riverview Drive. HFF placed the five-year, fixed-rate loan with Lakeland Bank.
The space is part of a 225,336-square-foot light industrial building that Tulfra acquired in February 2015, when it was 46 percent leased, according to an HFF news release. Tulfra redeveloped the building into a commercial condominium, with one unit being repositioned into a 100,000-square-foot, self-storage facility co-developed with the Hampshire Cos.
HFF arranged construction financing in October 2016 for the venture, while the balance of the property is being financed in the most recent transaction. In both deals, the HFF debt placement team representing the borrower was led by Senior Managing Director Jon Mikula and Managing Director Michael Klein.
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The 55-year-old building served as the primary bakery for Thomas’ English Muffins and supplied the entire East Coast until 1998, when it was developed into a modern multitenant facility, HFF said. The property’s location offers immediate access to Route 46, while sitting some 22 miles from New York City.
“This 91,000-square-foot industrial condominium is the final piece of Tulfra’s business plan to create value for this asset, which is located in one of the top industrial flex markets in the U.S.,” Klein said, noting that the firm has sold a roughly 28,800-square-foot condominium unit to Passaic County and is in the process of developing the self-storage facility.
“Lakeland Bank easily recognized Tulfra’s abilities, demand for the 18,000-square-foot vacancy and the overall strength of the Totowa market,” Klein added. “In turn, they provided the borrower with an aggressive interest rate, fare structure and flexible release provisions for future condominium sales.”