Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $12.2 million in construction financing to reposition a light industrial building into a 1,246-unit, Class A self storage facility in Totowa, New Jersey.
HFF worked on behalf of the developer, a joint venture partnership between Tulfra Real Estate and The Hampshire Companies, to place the construction loan with M&T Bank. Tulfra purchased the larger 225,336-square-foot light industrial building, which was 46 percent leased at the time of purchase in February 2015 at a substantial discount. Tulfra has since created significant value by subdividing the facility into three condominium units.
The future two-story self storage facility will comprise 1,235 climate- and 11 non-climate controlled units situated in 105,536 square feet of the light industrial building at 930 North Riverview Drive. The facility will be situated at a signalized intersection along North Riverview Drive within a densely-populated residential and commercial area within the Passaic County Self Storage submarket. The property’s location provides immediate access to Route 46, one of the primary east-west arteries and retail corridors in the region. There are more than 90,640 residents living within a three-mile radius of the property, with a 1.25 percent growth to 91,775 residents projected by 2020.
The HFF debt placement team representing the borrower was led by senior managing director Jon Mikula and managing director Michael Klein.
About Tulfra Real Estate
Tulfra Real Estate and its affiliates currently own and manage four million square feet of industrial and commercial real estate, encompassing more than 50 buildings with 200 public and private tenants in Northern and Central New Jersey. The firm currently has an additional 500,000 square feet under development. Learn more at tulfra.com.
About The Hampshire Companies
The Hampshire Companies is a full-service, private real estate firm based in Morristown, New Jersey. The Hampshire Companies is a vibrant, dynamic organization that combines creative vision and superior execution, thereby enabling it to create and enhance value in real estate investments. Additional information on The Hampshire Companies is available online at HampshireRE.com. To stay connected with The Hampshire Companies and for updates on the latest transactions and news follow the company on Facebook (facebook.com/hampshireco), Twitter (@hampshireco), and LinkedIn (linkedin.com/company/the-hampshire-companies).
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.