Knighthead Funding, LLC (“Knighthead”) has provided a local investor with a $31 million first mortgage loan to refinance a 210,000-square-foot suburban Class A office building at 1085 Morris Avenue in Union, NJ.
The building had served as the headquarters of Elizabethtown Gas, a regional natural gas utility, since it was constructed in 1988. Following industry consolidation, the utility company relocated after the expiration of its lease in April. A portion of the proceeds from the two-year, non-recourse loan will fund leasing costs and tenant improvements associated with re-stabilizing the building.
The immediate area surrounding the property has experienced explosive growth over the last five years driven by Kean University, one of the largest institutions of higher education in the region. The property is located directly across the street from the University’s main campus and is in close proximity to New Jersey Transit’s Union Train Station.
“The sponsors have a long track record of success within the market, having developed more than 4 million square feet of commercial properties, including 18 class-A office buildings,” said Brian Sullivan, Vice President of Loan Originations for Knighthead.
“The property’s location and quality of construction meet the requirements of a large number of businesses within the market, increasing its overall appeal,” added Knighthead Principal, Jonathan Daniel.