CLIFTON, NJ—Holliday Fenoglio Fowler arranged a $23.35 million refinancing for Tulfra Real Estate’s and The Hampshire Companies’ jointly owned 204,000-square-foot industrial building at 65 South Industrial Street in Clifton, NJ.
The HFF team worked on behalf of the Tulfra/Hampshire partnership to place the 10-year, fixed-rate loan with Citizens Bank. Loan proceeds will be used to refinance the existing construction financing on the property.
The single-building industrial facility recently received a multimillion dollar renovation that included raising the roof to a 27-foot ceiling height, new exterior skin, addition of six new loading docks (for a total of 24), refinishing the warehouse floors, installing new lighting and sprinklers, adding new mechanical and electrical systems and fitting out 28,000 square feet of office space.
The speculative redevelopment project is now fully leased to Damascus Bakeries, which will use the building as a second manufacturing facility to accommodate the company’s growing production needs and its corporate headquarters. Damascus is leasing space for a 15-year term and will also take a 50-percent ownership interest in the borrower entity. Situated on 11 acres, 65 South Industrial Street is located just off Route 3 less than two miles from the Garden State Parkway and seven miles from the New Jersey Turnpike. The property is about 15 miles from Newark Liberty International Airport and the Port of Newark-Elizabeth. Additionally, the property is about 22 miles from Manhattan.
The HFF team included senior managing director Jon Mikula and managing director Michael Klein.
“Citizens Bank quickly understood the benefits that the property’s extensive highway access, deep labor pool, proximity to New York City and unique building specs would provide the tenant and was able to provide an attractive rate,” Klein says. “Tulfra and Hampshire did a fantastic job redeveloping this asset into a modern manufacturing/distribution facility, and we were happy to help them put a long-term loan in place that caps off this spec redevelopment project.”