MONTCLAIR and CLIFTON, N.J., (March 31, 2022) – iBorrow, a nationwide private direct lender for commercial real estate, recently provided financing to support the acquisitions and repositionings of two vacant properties totaling nearly 50,000 square feet, both located in Northern New Jersey.
The assets include a three-story, 19,952 square-foot property in Montclair, which was historically used as a self-storage facility, and a 28,178 square-foot industrial property in Clifton, according to Brian Good, CEO of iBorrow.
“These two projects reflect strong fundamentals of the New Jersey market that support the demand for upgraded properties spanning a range of sectors,” explains Good, who notes that the state saw solid population growth over the past decade, especially within the Northern counties where these properties are located. “Both of the assets will allow the borrowers to serve the needs of their respective submarkets through strategic conversions into new product types with sound and actionable business plans.”
More details on the financing transactions are below:
Financing to Support the Acquisition and Mixed-Use Conversion of a Former Self-Storage Property in Montclair
iBorrow secured a $4 million loan to support the acquisition and renovation of a 19,952 square-foot asset in Montclair, New Jersey.
The borrower, a full-service real estate investment and development company, identified a prime opportunity to convert the three-story building, which was previously used as a self-storage facility, into a mixed-use property featuring office and retail space, according to Good.
“The borrower, a proven operator with a strong track record of executing on its business plans, will invest approximately $2.2 million to upgrade and reposition the ground floor of the property as a retail space and the upper floors for office use,” explains Good. “The asset is well located in a high-growth submarket with strong occupancy, and is poised to benefit from compressing vacancies in the state due in part to economic incentives and dwindling Class B office supply. This was an attractive opportunity in which we were able to rise to the challenge of providing a flexible financing solution to the borrower that will allow them to quickly execute the business plan.”
The asset is located at 6-8 Gates Avenue in Montclair, New Jersey.
Financing to Support the Acquisition and Conversion of Industrial Property into a Climate-Controlled Self-Storage Facility in Clifton
iBorrow has provided $3.9 million in financing for the acquisition and repositioning of a 28,178 square-foot industrial building in Clifton, New Jersey.
The borrower, a leading storage solution company in New Jersey, plans to implement approximately $1.5 million in capital renovations to convert the asset into a self-storage facility featuring 397 units with a total of 26,590 rentable square feet, according to Good.
“This property’s location in Northern New Jersey near several major thoroughfares makes it very well positioned to serve the greater New York metropolitan area, which is one of the country’s top markets for self-storage demand,” says Good. “The borrower strategically identified the opportunity to respond to this growing demand by delivering a state-of-the art, climate-controlled facility. We were able to provide a loan needed to support this project with the flexibility and speed that the borrower required.”
The property is located at 550 Lexington Avenue in Clifton, New Jersey.