Cushman & Wakefield arranged $41 million in acquisition financing for Ivy Realty in their purchase of a 768,244 s/f industrial portfolio in Warren and Somerset, New Jersey.
The financing was provided by BBVA Compass, which funded both the acquisition and future renovation and leasing related costs.
A Cushman & Wakefield Equity, Debt and Structured Finance team of John Alascio, Sridhar Vankayala, and Zachary Kraft represented Ivy Realty in the transaction.
“This transaction represented a compelling financing opportunity for lenders given the sponsorship and value-add profile,” said John Alascio of Cushman & Wakefield.
“We received strong lender feedback, but eventually chose BBVA as they demonstrated a clear understanding of the opportunity and business plan. They provided attractive terms that were flexible to match with the sponsor’s future needs.”
“Lenders currently have a deep appetite for industrial assets, particularly when its combined with strong sponsorship and a clear value-add business plan, all of which were available in this unique transaction,” added Sri Vankayala.
The 768,244 s/f, seven-property portfolio is comprised of three industrial buildings, two flex/lab buildings and two office buildings located in two separate “pods.”
One pod is located in Warren, N.J. and is comprised of the flex/lab and office buildings including 7 Powder Horn Drive, 30 Technology Drive, 40 Technology Drive and 45 Technology Drive.
The second pod is located in Somerset, N.J. and is comprised of the industrial buildings including 1 Riverview Drive, 50 Randolph Road, 100 Randolph Road and a 5-acre land parcel.
Ivy Realty plans to re-brand the portfolio and drive leasing velocity through capital improvements and a new marketing campaign.
The seven buildings are located near major roadways and multimodal mass transportation options. The properties in Somerset are one mile from Exit 12 of I-287, while the assets in Warren are located off Exit 36 of I-78.