FLORHAM PARK, NJ—Burton Real Estate, a privately held real estate investment firm, has acquired a three-property industrial portfolio totaling 176,472 square feet in core industrial markets located along the New Jersey Turnpike corridor and in Northern Virginia.
Holliday Fenoglio Fowler arranged $11.3 million in permanent financing, placing a 10-year, fixed-rate loan with CUNA Mutual Group. Proceeds will be used to pay down the borrower's acquisition line of credit. The borrower purchased the assets within the last three years, and all the properties were purchased with short-term leases in place.
“After Burton Real Estate executed its business plan and got each of the tenants to renew, it was ready to put long-term, fixed-rate, non-recourse financing on the portfolio,” says HFF managing director Michael Klein, who led the financing team. “Like many life insurance companies, CUNA was very eager to land on industrial properties and provided a very attractive rate and flexibility to add additional properties to the portfolio in the future.”
The portfolio includes two New Jersey properties: the 78,272-square-foot industrial warehouse at One Fitzgerald Avenue in Monroe three miles off the New Jersey Turnpike in the Exit 8A Industrial submarket and the 55,000-square-foot facility at 509 Heron Drive in Swedesboro, about 26 miles southeast of Philadelphia and seven miles west of the New Jersey Turnpike in the Swedesboro/Woolwich Industrial submarket.
The Northern Virginia property is located at 7979 Wellingford in Manassas. The 43,200-square-foot industrial/flex warehouse is located along the Route 29/Interstate 66 corridor 3.5 miles southwest of Washington, DC. The portfolio is fully leased to four tenants and features clear heights ranging from 18 to 33 feet, eight dock doors and three drive-in doors.
CORRECTION, 1/26/2018, 12:14 p.m.: Because of an editing error, an earlier version of this story incorrectly referred to the HFF financing as acquisition financing. It was permanent financing to replace the acquisition debt.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
