Logan North Industrial Park in Logan Township — Courtesy: Greek Development
By Joshua Burd
Greek Development has secured $50 million in permanent financing for two new industrial buildings and an adjacent trailer lot in Logan Township, in a deal arranged by JLL.
According to the borrower, the loan replaces construction financing by Wells Fargo for buildings A and F, which are fully leased and total 491,254 square feet, within the 3.2 million-square-foot Logan North Industrial Park near Interstate 295. The financing from an undisclosed life insurance company also applies to Trailer Lot G, which has parking for 264 trailers.
Greek is developing Logan North Industrial Park with Advance Realty Investors and recently purchased its partner’s interest in the three properties. JLL senior managing directors Michael Klein, Jim Cadranell and Gregory Nalbandian and Associate Ryan Carroll arranged the permanent financing.
“With increasingly high demand for industrial space in New Jersey, the caliber of sponsorship enables us to continue developing modern campuses like Logan North that provide tenants with best-in-class assets and set entire regions on track for long-term growth,” said David Greek, managing partner of Greek Development. “Despite recent volatility, lenders recognize the incredible value that these industrial properties offer and the role they play in keeping pace with the continued growth of e-commerce.”
In a news release, Greek noted that Building A is fully leased to Shearer Holdings, a specialized logistics company and partner of SEKO Logistics. The 164,317-square-foot facility has 36-foot clear ceiling heights, 46 dock-high doors, two drive-in doors and 199 car parking spaces.
Building F, which measures 326,937 square feet, and Lot G span a combined 11.36 acres and are fully leased to last-mile delivery company LaserShip. The structure has 40-foot clear heights, 72 dock-high doors, two drive-in doors, 237 car parking spaces and 109 trailer parking spaces.
Logan North, which borders Route 322, is also home to Target and Lineage Logistics. Construction is currently underway on a third phase, with plans calling for two buildings of 274,524 and 475,488 square feet, while the last phase of the development provides a build-to-suit opportunity of 200,915 square feet.
“Our team is proud and grateful to be partnering with one of the largest life insurance companies on this transaction,” said Alex Motiuk, director of acquisitions at Greek Development. “Since acquiring the site in 2018, our ongoing success in Logan North’s development has continued to reaffirm our vision for this project. We are confident that it will help meet the demand from top occupiers for truly last-mile, best-in-class warehouse facilities.”
The developer noted that Logan North sits just 14 miles from the Philadelphia International Airport and is less than 20 miles from the recently renovated Port of Philadelphia and the Port of Wilmington, two of the region’s busiest ports.
“Despite the ongoing turbulence in the capital markets, life insurance companies continue to serve as the best source of long-term funding to best in class warehouse/distribution facilities in last mile locations,” JLL’s Klein said. “The lender quickly recognized the quality product that Greek develops and provided a very attractive rate and forward funding component that best met the borrower’s needs.”