JLL Capital Markets announced today that it has arranged a recapitalization of a four-property industrial portfolio totaling 685,781 square feet in Piscataway, N.J., and Orlando, Fla.
JLL worked on behalf of the sponsor, Denholtz Properties, to arrange the joint venture equity partnership with an institutional investor.
The portfolio comprises 16 buildings at 140 and 141-147 Ethel Rd. West in Piscataway and Silver Star Commerce Center (3600-3820 Silver Star Rd.) and Cypress Park (9500-9901 Satellite Blvd.) in Orlando. The properties all have unparalleled access to regional throughfares and arteries, providing access to millions of customers within a day’s drive. Constructed between 1971 and 1997, the portfolio features ideal light industrial functionality and improvements.
Northern New Jersey and Orlando are two industrial markets with notably strong fundamentals. Orlando’s asking rents have increased an average of 4.7% annually for the last five years, with the direct asking rent at $6.65 during the first quarter of 2021, according to JLL Research. New Jersey’s total industrial vacancy is just 2.6% during the first quarter of 2021, a testament to the enduring strength of the market, and JLL Research reports that the New Jersey Industrial market is primed for even more gains this year.
The JLL Capital Markets Equity Placement team was led by Senior Director Marc Duval, Senior Managing Directors Jon Mikula and Michael Klein and Director Jordan Avanzato.
As part of the recapitalization, JLL secured financing with Societe Generale. The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Directors Michael Gigliotti, Jon Mikula and Michael Klein and Director Maxx Carney.
“The capital for industrial product is highly liquid today for a variety of reasons, and more competition among investors has led to more aggressive deal structures,” Duval said. “This transaction allowed a sophisticated industrial operator to maintain control over all aspects of operations and management while participating in the upside with a trusted equity partner.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.