Bridge Industrial is developing Bridge Point 15E, a new 211,388-square-foot distribution center at 17 Blanchard St. in Newark. — Rendering courtesy: JLL
By Joshua Burd
Bridge Industrial has secured $64.3 million in financing to build more than 200,000 square feet of new logistics space in Newark’s port district, brokers with JLL announced.
According to the debt placement team, an affiliate of Heitman LLC is providing the three-year construction loan in connection with the project at 17 Blanchard St. JLL noted that the development, known as Bridge Point 15E, will create a 211,388-square-foot modern distribution center less than a half-mile from New Jersey Turnpike Exit 15E and under three miles from Newark Liberty International Airport and Port Newark-Elizabeth.
“We are pleased to have helped Bridge Industrial secure construction financing for another spec industrial development project,” said Michael Klein, a senior managing director with JLL. “Construction financing for spec industrial developments is challenging given current market conditions, but there is still a market for well-located projects being built by experienced developers such as Bridge.”
Klein worked alongside JLL Senior Managing Director Jon Mikula and Vice President Michael Lachs to source the loan with the global real estate investment management firm, representing Bridge in the transaction. In announcing the deal, they noted that Bridge Point 15E will add supply to a submarket that has a 1.86 percent vacancy rate.
What’s more, demand for industrial space in New Jersey has swelled over the last five years due to the rise of e-commerce and continuous record-breaking shipping container shipping volume at nearby port facilities, JLL said. The firm added that, as of late last year, construction activity in the asset class reached the highest level in the market’s history.
“This submarket is one of the most in-demand locations in the country,” Mikula said.