The Fairfield Industrial Campus at 16-18 Passaic Ave. in Fairfield — Courtesy: JLL
By Joshua Burd
Denholtz Properties has refinanced a two-building, 90,000-square-foot industrial portfolio in Fairfield, in a transaction arranged by brokers with JLL.
The debt placement team represented the borrower, a Red Bank-based developer and investor, in sourcing the loan for the Fairfield Industrial Campus at 16-18 Passaic Ave. Principal Real Estate Investors provided the 10-year, fixed-rate financing, which Denholtz will use to retire existing debt and repatriate equity to its long-time investors.
Additional terms were not disclosed.
“Last-mile logistics in suburban markets like Fairfield are critical to our economy, and Fairfield Industrial Campus has provided that for decades,” said Jon Mikula, a senior managing director with JLL’s Morristown-based capital markets team. He led the assignment alongside Michael Klein, also a senior managing director, and Analyst Gerard Quinn.
Completed in 1970, the multitenant buildings feature 19-foot clear ceiling heights, 18 loading positions, LED lighting, 20,700 square feet of office space and 157 parking spaces, according to a news release. The campus is fully leased to 18 tenants in multiple industries, with an average occupancy rate of 98 percent over the past five years.
The complex sits on just under six acres near Route 46 and in a submarket with 2.2 percent vacancy, JLL said. The firm also noted that rents have increased 8 percent over the past year, thanks in part to its location near highways and area transportation hubs.
“The Fairfield market has always been well-occupied, given its access to an extensive transportation infrastructure, deep labor pool and proximity to nearby executive bedroom communities of small and mid-sized business that the subject caters to,” Klein said.