Cronheim arranges $50M acquisition loan for furniture distributor

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Cronheim Mortgage has secured $49.5 million acquisition financing
for a  634,495 s/f industrial property in
Highstown, NJ.

Dev Morris, Allison Villamagna, and Andrew Stewart arranged
permanent financing for the acquisition of the Modway Corporate Headquarters in
Hightstown, NJ.

The 10-year loan was structured with interest-only financing
for the entire term and was priced at 3.46 percent at  80 percent loan-to-cost.

 The financing was
arranged on behalf of the borrower, an affiliate of Modway Inc., which
maintains its headquarters there.

Situated at 329 Wyckoff Mills Road, the 634,495 s/f state-of-the-art warehouse facility features 36 ft. clear ceiling heights, 111 dock doors, 153 trailer spaces, and 271 car parking spaces, all in a location that is adjacent and visible from the NJ Turnpike. The property was built in 2017 and is has tilt-up construction walls.

Modway Inc., is engaged in the importing and wholesale
distribution of home furnishings to various chain stores, online sellers, and
internet-based distribution channels. The company also sells furniture to the
public through various web-based sales streams.

They have grown continuously since being founded in 2010 and
also provide shipping services to many of its customers. Modway has benefitted
greatly from COVID related home improvement sales where homeowners are
reinvesting in their primary residences.

According to Stewart, “Modway is a fast-growing company and
was able to acquire this property at a reasonable price. We recognized that and
were able to help them save significant money by providing a high leverage,
interest-only solution at an attractive rate that allows them the cash flow and
flexibility to grow their business with a modest fixed-rate payment stream.”

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