KS Group has received $60.5 million in acquisition financing to purchase a 51-acre industrial site in Newark, N.J., which is to be repurposed into an Industrial Outdoor Storage (IOS) facility, as exclusively reported by Commercial Observer.
Keystone Equities provided the debt financing in the form of a senior bridge loan. According to the company, this brings the total capital provided by Keystone Equities since August 2023 to $660 million. KS Group is acquiring the site from an ownership group led by Daryl Hagler.
The transaction was arranged by Shlomo Weissberg and Eli Klapper of CBRE. Jonathan Zamir, founder and CEO of Keystone Equities, explained that at the time of financing, the site was still undergoing active environmental remediation and did not yet have a certificate of occupancy. This led several traditional lenders to be unwilling to take on the risk associated with the deal.
Complex Financing and Market Analysis
Zamir emphasised that this deal required thorough due diligence. Keystone Equities meticulously analysed the risks and found a solution that worked for both the company and the borrower. He noted that this is where Keystone offers its added value.
The industrial site at 151 Raymond Boulevard in Newark is a former PSEG property and is distinguished by its proximity to Port Newark-Elizabeth as well as New York City. The newly designed IOS facility will include parking for lorries and trailers, a shipping container depot, and charging stations for electric vehicles and solar panels.
Strong Market Dynamics for IOS Spaces
According to current reports from CBRE, the vacancy rate for IOS spaces in North New Jersey is only 2.5 per cent. Rents in this sector have increased by 123 per cent since 2020, underscoring the attractiveness and necessity of such locations.
