July 19, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $9.1 million financing for 405 Heron Drive, a 254,250-square-foot, Class B industrial building in the suburban Philadelphia community of Swedesboro, New Jersey.
The HFF team worked on behalf of the borrower, Burton Real Estate (BRE), to place a 10-year, fixed-rate loan with CUNA Mutual Group (CUNA). This loan will be added to an existing mortgage collateralized by a three-building industrial portfolio that HFF placed with CUNA at the end of 2017, which included 509 Heron Drive. Burton Real Estate purchased 405 Heron Drive as a value-add investment in November 2017. The subject property was 88 percent leased at the time of purchase, and loan proceeds will be utilized to return equity to the sponsorship. HFF will service the loan.
Situated on 25.38 acres, 405 Heron Drive is just off Interstate 295 and 16 miles from Philadelphia International Airport. Additionally, the property is near the New Jersey Turnpike, which provides easy access to the northern part of New Jersey and New York City. The single-story building was originally developed in 1991 and recently underwent renovations throughout 2017. 405 Heron Drive features 24 to 25-foot clear heights, nine dock-high doors and two drive-in doors.
The HFF debt placement team representing the borrower included managing director Michael Klein.
“CUNA Mutual Group had a firm understanding of the market, the property and BRE’s business plan for 405 Heron Drive from closing the previous transaction in 2017,” Klein said. “As BRE’s business plan came to fruition and more space was leased by existing tenants, it was a natural fit for CUNA to add this property to the portfolio.”