D2 Organization's $7.5 Million Acquisition Financing Success
D2 Organization's Strategic Acquisition in the Industrial Market
D2 Harding Highway LLC, affiliated with the D2 Organization, has recently secured a significant parcel of industrial land. This strategic acquisition involves a fully entitled 76-acre industrial development site located at 965 Harding Highway. The site is set to support future logistical operations with its prime location features.
Financing Details for the Industrial Site
The acquisition was backed by a substantial $7.5 million bridge loan coordinated by D2 Capital Advisors. This financing effort was led by industry experts Jack Cortese, David Frankel, and John Lightcap, who ensured that funds are readily available for development.
Non-Recourse Loan Structure Explained
The financing provided by the Toronto-based debt fund Romspen is non-recourse. This means that the loan is secured only by the property itself, offering a strategic advantage to D2 Organization in managing its risk. The funds will not only help in acquiring the site but also in covering initial pre-development costs essential for launching this new project.
Features of the Acquired Site
The industrial site is approved for developing two Class A warehouse buildings, which will encompass a combined total of 476,300 square feet. Building 1 is slated to be 315,700 square feet, while Building 2 will measure 160,600 square feet. Both buildings are designed to meet institutional standards, equipped with 65-foot high exteriors, ample trailer parking, and numerous vehicle spaces for operational efficiency.
Strategic Location Benefits
This site boasts an advantageous location near major transportation routes, including Interstate 295, which facilitates effortless connectivity to the New Jersey Turnpike and other significant distribution corridors. This level of accessibility makes the site ideal for e-commerce logistics, providing next-day reach to approximately 38% of the U.S. population, contributing to its stature as a vital logistics hub.
Company Insights and Future Plans
Jack Cortese, Vice President at D2 Capital Advisors, emphasized that their comprehensive understanding of development trends among lenders is crucial. This insight not only aids D2 Organization in maximizing its competitive edge but also enhances service delivery concerning financial solutions.
Market Confidence and Growth Potential
Keith Delaney, President and CEO of D2 Organization, expressed confidence in the long-term growth potential of the Southern New Jersey industrial market. He noted that this acquisition complements their existing regional portfolio, which has been built on solid fundamentals and demand for quality industrial properties.
Acquisition Impact on Local Economy
Since 2019, D2 Organization has made impressive strides, entitling over 4.1 million square feet of industrial land, efficiently sold or developed through collaborations with institutional investors. This continuous growth is indicative of the rising demand for industrial spaces in a region that hosts major corporations like Amazon and UPS, which are crucial players in the logistics and distribution sectors.
A Growing Industry Landscape
The Southern New Jersey / Eastern Pennsylvania region ranks as the second-largest big-box warehouse market in North America. This growth is fueled by strong institutional demand, limited supply, and robust rent increases that underscore the area’s attractiveness for both investment and development.
About D2 Organization and D2 Capital Advisors
D2 Organization is recognized as a key player in the investment and development landscape, focusing on properties that offer potential for added value through transformation and strategic positioning. In its commitment to the industrial sector, the firm has successfully developed over 4.5 million square feet of real estate.
On the other hand, D2 Capital Advisors stands out as a premier real estate capital advisory service, having executed more than $730 million in transactions. Their expertise lies in structuring various financing solutions tailored for middle-market sponsors and institutional investors.
Frequently Asked Questions
What is the purpose of the acquisition?
The acquisition aims to develop a large industrial site that meets modern logistical needs and enhances e-commerce operations.
Who facilitated the financing for the acquisition?
The financing was arranged by D2 Capital Advisors, with key figures including Jack Cortese, David Frankel, and John Lightcap leading the effort.
What types of facilities will be built on the site?
Two Class A warehouse facilities will be constructed, totaling 476,300 square feet to support distribution and logistics operations.
What advantages does the site's location provide?
The site's strategic location provides exceptional accessibility to major highways, facilitating distribution throughout the Northeast corridor.
How does D2 Organization plan for future developments?
D2 Organization is continually assessing both development and sale strategies for its acquisitions to maximize return on investment.
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