HFF secures $28.5M warehouse refinancing

By Eric Strauss
Mount Olive | Jun 14, 2018 at 12:52 pm

Holliday Fenoglio Fowler L.P. has arranged the $28.5 million refinancing of a three-building warehouse facility in Mount Olive, it announced Thursday.

The 443,030-square-foot Class A property at 350 Clark Drive is owned by Commercial Realty Group. HFF helped the borrower secure a 10-year, fixed-rate loan with John Hancock Real Estate Finance Group. HFF will also service the loan, it added.

The HFF debt team included Greg Nalbandian, senior managing director, and Tim Mason, analyst.

“The HFF investment advisory team sold this asset to CRG less than three years ago,” Nalbandian said in a prepared statement. “In this short period of time, CRG increased the (net operating income) by more than $1 million through aggressive lease-up of vacant space, renewing tenants at market rents and reduction of operating costs. CRG also completed a building upgrade package and remedied deferred maintenance.

“The substantial value creation allowed CRG to execute its value-added neighborhood model for a full cash-out of the sponsor’s equity, which they intend to redeploy into other value-add opportunities.”

The facility, once the headquarters of Calvin Klein Cosmetics, is currently 97.1 percent leased to office and industrial tenants, HFF said. It is located within Mount Olive’s International Trade Center, a Foreign Trade Zone industrial park.

Eric Strauss | estrauss@roi-nj.com | acerimrat