At a glance
- Forbright Bank supplied $52.2 million of acquisition financing, about 76% of the purchase price, Commercial Observer first reported.
- For allocators underwriting IOS funds, the Forbright loan is a usable benchmark: bank debt covering roughly three-quarters of purchase price on land-heavy collateral.
- Greg Pearson, the firm's chief investment officer, said the transaction pairs a stabilized, fully leased asset with an immediate value-add opportunity.
Outpost bought two industrial outdoor storage properties in Kearny and Newark, N.J., for $68.5 million, adding almost 15 acres to its national IOS portfolio.
Forbright Bank supplied $52.2 million of acquisition financing, about 76% of the purchase price, Commercial Observer first reported. JLL Capital Markets arranged the loan and handled the sale. Outpost did not identify the sellers. JLL Capital Markets arranged $135 million of debt and equity for a Yonkers apartment tower in October, as Private Wealth Daily previously reported.
For allocators underwriting IOS funds, the Forbright loan is a usable benchmark: bank debt covering roughly three-quarters of purchase price on land-heavy collateral. Outpost has been deploying a $1 billion fund into cities near major container ports with dense populations, little undeveloped land and tight policies on new development. The company says both parcels meet those criteria and serve nearby maritime ports as well as Newark Liberty International Airport.
Container yards and trailer parking
Greg Pearson, the firm's chief investment officer, said the transaction pairs a stabilized, fully leased asset with an immediate value-add opportunity. The Kearny property at 76 Central Avenue includes two small office buildings and can hold 234 shipping containers, 66 trailers, 28 tractors and 54 cars, according to Outpost. The Newark site at 2120 McCarter Highway covers 6.9 acres and can accommodate 163 55-foot trailers.
Reported by the Deals desk from Commercial Observer. Published . Corrections