JLL worked on behalf of Cohen to place the five-year, fixed-rate loan through a correspondent life insurance company for the 65,715-square-foot warehouse, which is fully leased to Nestle Waters North America.
Located at 111-135 Thomas McGovern Drive, the property has been occupied by Nestle since 2008 and used as a mission-critical distribution outlet and manufacturing facility for its bottled water. The building features a 24-foot clear height, 11 dock-high doors, four drive-in doors, mezzanine storage, 15,000 square feet of office space, truck parking and ample vehicle parking stalls.
The building sits on 3.4 acres less than one mile from Interstate 78, which connects to the Holland and Lincoln tunnels and provides the tenant immediate access into New York City. This ideal logistics location is also within 10 miles of Port Newark-Elizabeth and Newark International Airport.
According to JLL Research’s New Jersey Industrial Insight report for the fourth quarter of 2021, the New Jersey industrial market’s unrelenting demand has driven vacancy rates to a record low of 1.2%, which is down from the third quarter’s rate of 1.7%. With demand growing and vacancy at hyper-low levels, JLL forecasts continued rent growth, which is currently sitting at $12.84 per square foot, up more than a dollar over last quarter.
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Jon Mikula.