News Summary
The Joyce Kilmer Logistics Center in New Brunswick, NJ, has secured $33 million in construction financing. This development will feature two Class A industrial buildings and cover 195,421 square feet. Strategically located near major highways, the project seeks to meet the demand for modern industrial spaces, addressing the scarcity of facilities under 100,000 square feet. With completion planned for late 2026, developers Faropoint and Deugen Development aim to enhance the local industrial landscape, creating opportunities for businesses and jobs in the area.
Construction Funded for Joyce Kilmer Logistics Center in New Brunswick, NJ
A significant advancement in the industrial development sector is underway as Cushman & Wakefield has successfully secured $33 million in construction financing for the Joyce Kilmer Logistics Center, located at 701 Joyce Kilmer Ave, New Brunswick, NJ. This ambitious project encompasses a two-building, Class A industrial facility, totaling a remarkable 195,421 square feet of modern logistics space.
The construction financing, provided by Bank Hapoalim, marks a critical step forward in addressing the growing demand for versatile industrial spaces. Completion of the Joyce Kilmer Logistics Center is anticipated by late 2026, with the development situated in the Exit 9 industrial corridor, an area identified as a strategic hub for commerce in the Northeastern United States.
Increased Demand and Investor Confidence
The surge in demand for contemporary industrial facilities can be attributed to the ongoing growth in e-commerce and the optimization of supply chains. Investor confidence in the industrial market is reported to be on the rise, particularly as the location of these facilities becomes increasingly appealing. The Joyce Kilmer Logistics Center benefits from its close proximity to major highways, including the New Jersey Turnpike and Route 1, which enhances accessibility for logistical operations.
Developers Faropoint and Deugen Development aim to address the limited supply of Class A industrial products that are under 100,000 square feet, catering to a specific market need. The center will offer flexible suite options ranging from 40,000 to 50,000 square feet, allowing for adjustments in size according to the requirements of various businesses.
Market Insights and Development Strategy
Cushman & Wakefield’s insights into the market reveal a persistent demand for Class A industrial properties, despite experiencing negative net absorption over the last nine quarters. The strategic collaboration between Faropoint and Deugen Development enhances the project through a combination of local expertise and data-driven acquisition strategies. This partnership is further fortified by the involvement of key stakeholders, including Paramus-based Deugen Development, BHI Bank, and the City of New Brunswick.
Faropoint has recently bolstered its industrial portfolio with a substantial $328 million acquisition of 1.8 million square feet of properties across five states. This growth reflects the company’s commitment to expanding its footprint in the industrial real estate market, aligning well with the increasing demand for high-quality logistics and warehousing options.
A Bright Future for Industrial Development
The planned Joyce Kilmer Logistics Center embodies the evolving landscape of industrial development in the region. As businesses continue to pivot and adapt to the changing dynamics of e-commerce and logistics, projects like this one are essential in providing the necessary infrastructure. With an eye toward the future, the developers are keenly aware of the pressing market need for versatile, well-located industrial spaces.
By addressing the supply gap and enhancing the regional logistics landscape, the Joyce Kilmer Logistics Center is poised to become a valuable asset for businesses looking for quality industrial space in New Jersey. The combination of strategic location, modern development standards, and adaptability in space offerings positions this project as a critical player in the ongoing growth of the industrial sector in the Northeast.
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Additional Resources
- NJBIZ: Faropoint, Deugen Exit 9 Industrial Financing
- ConstructConnect: $1.1 Billion NextGen Mill Project in Saint John, N.B.
- CoStar: Faropoint, Deugen Develop Logistics Center
- Wikipedia: Logistics
- Google Search: Joyce Kilmer Logistics Center
