83 Stults Road in South Brunswick — Courtesy: HFF
By Joshua Burd
HFF has secured nearly $15 million in financing to help a joint venture acquire, entitle and renovate an industrial building in South Brunswick, where it also hopes to develop an adjacent parcel.
In a news release, HFF said it arranged the $14.9 million loan for EverWest Real Estate Partners LLC and Accordia Realty Ventures. The firms recently acquired the 368,537-square-foot, rail-served property at 83 Stults Road and the neighboring 16-acre parcel.
HFF placed the three-year, floating-rate loan through Malvern Federal Savings Bank, the news release said. Loan proceeds will be used to cover acquisition and closing costs associated with the purchase, pay for planned capital improvements to the property and pay for soft costs associated with securing approvals for the development site.
The HFF debt placement team representing the borrower was led by Managing Director Michael Klein and Senior Managing Director Eric Tupler.
The property is subject to a short-term sale-leaseback with Hermann Services Inc., HFF said. It is located two turns off New Jersey Turnpike Exit 8A, featuring a 24-foot clear ceiling height, 23 loading docks, one drive-in dock and 14,745 square feet of office space.
EverWest, a Denver-based investment firm and operator, and Fairfield-based Accordia plan on subdividing the property and erecting a 200,000-square-foot warehouse on the adjacent parcel.
“HFF is pleased to have secured financing on behalf of Everwest and Accordia for this acquisition,” Klein said. “8A is one of the strongest industrial submarkets in the state and we’re confident that they will do extremely well with this property.
“The property’s location and borrower’s experience with similar types of transactions allowed Malvern to provide a very competitive rate and a creative loan structure that will enable the borrower to easily execute its business plan during the loan term.”