Thorofare Capital has funded a $28,500,000 ground up construction loan for the development of 500 Halls Mill Road, a to-be-built 206,881 SF logistics warehouse in Freehold Township, New Jersey.

Once delivered, 500 Halls Mill will be a Class-A industrial warehouse featuring 36’ clear heights, with full cross-docking capabilities, situated on a 19.02-acre site including 56 truck spaces, 145 auto spaces and 6,210 SF of office space.

The developer of the project entered into a forward-sale agreement; thus, the property will be sold to a 3PL owner-user upon its anticipated Q2 2023 completion.

500 Halls Mill is located within the desirable Monmouth County submarket and situated at the interchange of Route 33. The property provides convenient access to major thoroughfares: Route 9 (1.5 miles), Interstate (5 miles), Garden State Parkway (8 miles), and Interstate 95 (14 miles). More importantly, the property is equidistant between Philadelphia and New York City, serving the two largest cities in the Northeast.

According to JLL’s research, over the past three years, Monmouth County market rents have grown 50.0%, and over the last five years over 60.0%, reaching their peak in the most recent quarter. At the same time, vacancy has trended below 3.5% year-to-date. The overall New Jersey industrial market has seen a year-to-date leasing volume of 34.8 million square feet, which is 20.0% higher than the year prior. 45.1% of the current industrial product under construction in New Jersey is pre-leased, further emphasizing the demand for industrial product.

The facility will be for LTL and last-mile trucking logistics, shipping, fulfillment, and warehousing for major corporate customers.

The loan carries an initial term of two years with one extension option subject to performance milestones and includes a flexible prepayment window upon the project’s completion.

The sponsor is a New Jersey-based private investment firm focused primarily on industrial development, multifamily and low-income housing acquisitions, and selective investments in the lodging sector. The sponsor manages a portfolio of over 9,000 residential units and 2.5 million square feet of industrial space.