By Joshua Burd
The developers of some 584,000 square feet of new cold storage and industrial space in East Hanover have secured a $135 million construction loan, brokers with Newmark said Tuesday.
According to a news release, Ares Commercial Real Estate Management provided the debt to the joint venture of Related Fund Management, Onyx Equities and Russo Development, which recently broke ground on the two-building project on Route 10. Newmark’s Jordan Roeschlaub, Jonathan Firestone and Nick Scribani sourced the debt on the borrowers’ behalf.
“This financing package will enable the continued expansion and success of RealCold’s platform across the United States,” Roeschlaub said, referring to the Related Cos. affiliate that is building the facility. “We’re thrilled to have arranged this financing on behalf of Related Fund Management and its partners.”
Known as High Point on 10, the development will rise on a former piece of the Novartis Corp. campus at the intersection of Ridgedale Avenue, which Russo and Onyx acquired in 2021 with plans to raze some 900,000 square feet of vacant office space. RealCold noted at a groundbreaking last month that the cold storage facility will have five fully convertible rooms as well as dedicated areas for direct-to-consumer activities and value-added services, supporting its ecommerce fulfillment solutions, while giving it quick access to the entire New York City metro area and more than 13.5 million people within a 30-mile radius.
Upon completion of High Point on 10, RealCold will be able to reach 48 percent of the U.S. population within one day and 97 percent within two days. It’s set to occupy 380,000 square feet within the cold storage portion of the project, which will rise alongside 220,000 square feet of dry industrial space with 40-foot clear ceiling heights.
RealCold, which has grown to be the 10th-largest cold storage operator, has a portfolio spanning some 1.6 million square feet and nearly 180,000 pallet positions, Newmark said in its announcement.
RealCold joins Russo, Onyx to kick off 380,000 sq. ft. cold storage project in East Hanover
