Cronheim Secures $25.2MM for NJ Office, Flex & Distribution Properties
Janet Proscia and David Turley arranged a $9,000,000 and a $16,200,000 loan in two separate transactions for its client on properties in Lawrenceville and Marlboro, New Jersey. Both loans were for terms of seven-years with an option to reset the rate for an additional five years.
The Lawrenceville, New Jersey property is comprised of four buildings totaling 118,750 sf of office, flex and distribution space. Strategically located just off the interchange of I-295 at Princeton Pike the Property offers space configurations from 1,900 to 15,000 sf. The location and the flexibility of floor plans are ideal for growing companies and for moderate sized businesses such as technology firms, laboratories, professional office users, training and education centers, service companies, and media firms to name a few.
Located in Marlboro, New Jersey, the 14 building campus of office and flex space on over 32 acres is situated just off Route 18 and is just one mile west of Route 9.
Cronheim was successful in sourcing debt for with a New Jersey bank on a non-recourse basis. The LTV on both loans was relatively conservative at under 65%.
Proscia commented, “While this was a reasonable LTV request, there were some challenges to overcome on both deals. The market in Lawrenceville had seen periods of historically higher than normal vacancy and in Marlboro a single tenant left the property causing a vacancy level it had not seen even through the real estate crash. We were able to demonstrate that the strength of hands-on ownership, continued investments in the property even during a down economy, and a willingness to leave equity in the property were all reasons for a lender to be comfortable with this long-term non-recourse investment. Ultimately this was a good fit for a bank because our client wanted flexibility on prepayment and this bank could accommodate.”