JV secures $12.6M construction loan for NJ distribution facility

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JLL Capital Markets has arranged $12.66 million in
construction financing for the development of 130 Commerce Center, a Class A,
171,000 s/f, state-of-the-art industrial warehouse and distribution center near
the I-95 corridor in Hamilton Township, New Jersey.

JLL worked on behalf of the developer, Penwood Real Estate
Investment Management, LLC, and Metrix Real Estate Services, LLC to place the
three year, floating-rate, non-recourse loan with a money center bank.

The project will be constructed on a speculative basis and
provide a centrally located warehouse and distribution facility for prospective
logistics or e-commerce focused companies.

With a target completion date in 3Q 2021, 130 Commerce
Center will feature steel frame construction, a metal roof deck, 36-foot clear
height, 40 loading positions, deep speed bays, 50 trailer parking stalls, ample
vehicle parking and a modern fire safety and lighting system. The development
will repurpose a site that was previously improved with a retail strip center.

The COVID-19 pandemic and the shelter-in-place policies that
ensued have accelerated e-commerce growth and the need for warehouse space
across the nation. JLL expects e-commerce sales could hit $1.5 trillion by
2025, which, in turn, will increase the demand for industrial real estate to an
additional 1 billion square feet.

Situated on 19.61 acres at 537 Route 130 in Hamilton
Township, 130 Commerce Center is within the Trenton Industrial Submarket and
located among the major East Coast economic centers, including New York and
Philadelphia, which will offer a future tenant access to 19 major U.S. markets
and nearly 33 percent of the U.S. population withing 24 hours. The site is
within 2.5 hours of three major ports: Ports of Newark-Elizabeth, Philadelphia and
Baltimore. Additionally, the building provides for easy access to an extensive
array of highways, including the New Jersey Turnpike (Interstate 95) and Routes
1, 206, 31 and 33.

The JLL Capital Markets team representing the sponsor was
led by Senior Managing Director Michael Klein and Director Max Custer.

“JLL is pleased to have placed another speculative
development loan on behalf of Penwood Real Estate Investment Management and
Metrix Real Estate Services,” Klein said. “The project’s Class A design and
quality, its exceptional location and the New Jersey industrial market’s robust
fundamentals will undoubtedly make 130 Commerce Center a great success. The
developers have demonstrated a consistent track record in delivering
high-quality distribution and warehouse product, which will very likely result
in the project being fully leased well in advance of construction completion.”

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