Central 9 Logistics Park at full buildout will span 4.1 million square feet across nine buildings along Jake Brown Road near Route 9. — File photo
By Joshua Burd
The next phase of a 4.1 million-square-foot industrial campus in Old Bridge is moving ahead with the help of a $654 million mortgage and mezzanine loan from Madison Realty Capital.
According to the lender, which announced the deal on Wednesday, 2020 Acquisitions will use the debt to refinance five buildings in the first phase of the new Central 9 Logistics Park and cover construction and leasing costs for two buildings in its second phase. The financing will advance the planned nine-building project on Jake Brown Road and just off Route 9, where the developer is transforming nearly 1,000 acres to leverage the site’s proximity to the New Jersey Turnpike, the Garden State Parkway and other major corridors.
Shaya Ackerman, Steven Treitel and Jacob Levy of NAMREKCA Capital arranged the transaction.
“Northern and central New Jersey remain among the country’s most competitive industrial markets, driven by ecommerce and 3PL demand against limited new supply,” said Josh Zegen, managing principal and cofounder of Madison Realty Capital. “Central 9 represents the type of industrial project we look for — a highly capable sponsor executing a multibuilding industrial campus in a supply-constrained market with strong fundamentals. This financing demonstrates Madison’s ability to provide flexible capital solutions at scale across all development stages.”
The lender noted that Central 9 will comprise three phases. That includes the five recently completed buildings in phase one, which range from 192,000 to 818,000 square feet for a total of some 2.1 million square feet, along with buildings of 139,000 and 809,000 square feet in phase two.
Tenants benefit from the park’s highway access and the ability to reach Port Newark-Elizabeth, Newark Liberty International Airport and New York City, along with its proximity to the densest consumer population in the U.S. and the region’s deep labor pool.
“We are excited and privileged to work with Madison Realty Capital,” said Efrem Gerszberg, principal and president of 2020 Acquisitions. “With three leases signed over the past 45 days totaling approximately 900,000 square feet, we are accelerating the construction of phase two and will begin construction immediately. Located in central New Jersey, directly on a major highway, Central 9 benefits from strong transportation infrastructure and a robust labor market.
“Additionally, tenants are attracted to tax expense stability as a result of a below market 30-year (payment in lieu of taxes agreement). With scarcity of large warehousing available in central New Jersey, the delivery of an 800,000-square-foot warehouse next year will be a benefit to the industrial market.”
