Madison Realty Capital has originated a $654 million mortgage and mezzanine loan to 2020 Acquisitions, a New Jersey-based development firm, to refinance and complete a portion of the Central 9 Logistics Park, a nine-building, 4.1 million-square-foot industrial campus located in Old Bridge, N.J. The financing will be used to refinance five buildings in Phase 1 of the development, and cover construction and leasing costs for two buildings in Phase 2 of the development.
Shaya Ackerman, Steven Treitel, and Jacob Levy of Namrekca Capital arranged the transaction.
“Northern and Central New Jersey remain among the country’s most competitive industrial markets, driven by e-commerce and 3PL demand against limited new supply,” said Josh Zegen, managing principal and co-founder of Madison Realty Capital. “Central 9 represents the type of industrial project we look for — a highly capable sponsor executing a multi-building industrial campus in a supply-constrained market with strong fundamentals. This financing demonstrates Madison’s ability to provide flexible capital solutions at scale across all development stages.”
Located directly off Route 9, the property is positioned between key logistics arteries including the Garden State Parkway, New Jersey Turnpike and Interstate 287, offering convenient access to Port Newark, Port Elizabeth, Newark Airport and New York City.
The industrial park is undergoing a three-phased development process, which includes five recently completed industrial buildings totaling approximately 2.1 million square feet in Phase 1, two additional buildings planned for development in Phase 2 and the completion of the park with the final two buildings slated for Phase 3. The finished buildings range from 192,000 square feet to 818,000 square feet, while the planned buildings in Phase 2 are expected to total 139,000 square feet and 809,000 square feet, respectively.
“We are excited and privileged to work with Madison Realty Capital. With three leases signed over the past 45 days totaling approximately 900,000 square feet, we are accelerating the construction of phase 2 and will begin construction immediately,” said Efrem Gerszberg, principal and president of 2020 Acquisitions. “Additionally, tenants are attracted to tax expense stability as a result of a below market 30-year Tax PILOT. With scarcity of large warehousing available in Central New Jersey, the delivery of an 800,00-square-foot warehouse next year will be a benefit to the industrial market.”
