CIT Group Inc. announced that CIT Real Estate Finance provided a $32.9 million senior secured loan to a real estate joint venture between AEW Capital Management (AEW) and Woodmont Industrial Partners. AEW owns the property on behalf of AEW Partners VI, L.P., the sixth in the firm’s series of opportunistic real estate funds. The financing will be used to redevelop Capital Logistics Center into a Class A, modern, six-building, 1.5 million-square-foot industrial park in Middletown, PA. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. The terms of the transaction were not disclosed.
“We are pleased to provide financing for this project to AEW and Woodmont as it will create additional Class A space in Central Pennsylvania, which remains in short supply,” said Matt Galligan, President of CIT Real Estate Finance. “Middletown is a strategic location for regional distribution tenants. The market offers easy distribution access to Baltimore, New York and Philadelphia. We pride ourselves in utilizing our deep commercial real estate knowledge to create customized financing solutions for our customers and look forward to building on this new relationship.”
Steve Reedy, Managing Director of CIT Real Estate Finance, said, “The East Shore Harrisburg industrial market is located in the I-81/I-78 distribution corridor and is a critical location for national retailers, consumer product companies and third-party logistics suppliers. Pricing for well-located actionable land has increased to record highs and is only expected to rise further as site options dwindle and developers compete for land positions.”
Steve Sechko, Director of AEW Capital Management, said, “This property is the third industrial investment in our joint venture with Woodmont. We believe demand for this product will be strong as we redevelop the property and rebrand the park in a market that is low on Class A industrial space.”
Eric Witmondt, Principal of Woodmont Industrial Partners, said, “Capital Logistics Center’s location at the intersection of multiple interstates puts it at the core of the Central PA industrial market, which is the gateway to the northeast distribution market. The highway infrastructure and proximity to intramodal transportation is attractive to distribution and fulfillment tenants. CIT’s speed and expertise put them at the head of the class when it comes to financing commercial real estate. We look forward to working with them again in the future.”
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world’s leading real estate investment advisors, AEW and its affiliates manage over $39 billion of capital invested in approximately $52.9 billion of property and securities in North America, Europe and Asia (as of June 30, 2014).