405 Heron Drive in Swedesboro — Courtesy: HFF
By Joshua Burd
A warehouse owner in Gloucester County has secured $9.1 million in financing for an expansion of its holdings in the area, brokerage firm HFF announced.
In a news release, HFF said it brokered the loan on behalf of Burton Real Estate for its purchase of 405 Heron Drive, a 254,250-square-foot, Class B industrial building in Swedesboro. The loan will be added to an existing mortgage collateralized by a three-building industrial portfolio, which includes a nearby property at 509 Heron Drive.
CUNA Mutual Group provided the 10-year, fixed-rate loan after also providing the financing for the three-property portfolio, according to a news release. HFF Managing Director Michael Klein led the debt placement team representing the borrower.
“CUNA Mutual Group had a firm understanding of the market, the property and BRE’s business plan for 405 Heron Drive from closing the previous transaction in 2017,” Klein said. “As BRE’s business plan came to fruition and more space was leased by existing tenants, it was a natural fit for CUNA to add this property to the portfolio.”
Burton purchased 405 Heron Drive as a value-add investment last fall, HFF said. The 27-year-old property, which is just off Interstate 295 and near the New Jersey Turnpike, was 88 percent leased at the time of the transaction.
Loan proceeds will be used to return equity to the sponsorship. HFF will service the loan.