Madison Realty Capital has provided a $654m (€563.9m) mortgage and mezzanine loan to 2020 Acquisitions for refinancing and new construction of a US logistics project.
The real estate private equity firm focused on real estate private credit said it has originated the loan to refinance and complete a portion of the Central 9 Logistics Park, a nine-building, 4.1m sqft industrial campus located in Old Bridge, New Jersey.
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.
Josh Zegen, managing principal and co-founder of Madison Realty Capital, said: “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.
“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.”
Efrem Gerszberg, principal and president of 2020 Acquisitions, said: “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.
“Located in Central New Jersey, directly on a major highway, Central 9 benefits from strong transportation infrastructure and a robust labor market. 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 800,000 square foot warehouse next year will be a benefit to the industrial market.”
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