Flexible Capital for a Large-Format Industrial Asset in a Supply-Constrained Market

Acquisition & renovation financing for a high-demand logistics corridor

Tremont Realty Capital provided a $47 million floating‑rate loan to support the acquisition and renovation of a 330,000‑square‑foot industrial warehouse in Passaic, New Jersey. The transaction reflects Tremont’s ability to deliver tailored financing solutions for experienced middle‑market sponsors seeking flexibility, speed and certainty of execution in a competitive industrial corridor.

Situated in one of Northern New Jersey’s most supply‑constrained logistics markets, the property presented a compelling opportunity: a large‑format industrial asset with immediate in‑place cash flow and significant potential for operational and physical upgrades. The loan structure allowed the sponsor to move quickly on the acquisition while securing future funding to support a phased renovation plan aligned with evolving tenant needs.

Capital partner for a complex leaseback and renovation strategy

With the asset delivered 100% occupied under a one‑year sale‑leaseback, the sponsor - an experienced operator and repeat Tremont borrower - required a capital partner experienced with the nuances of short‑term leaseback structures and able to underwrite a transition plan centered on repositioning the facility for long‑term tenancy and enhanced value. Tremont's holistic approach to underwriting business plans - evaluating existing cash flow, near‑term tenant rollover and long‑term market demand - enabled the sponsor to move confidently toward execution.

Tremont structured a three‑year initial loan term with two one‑year extension options, providing the sponsor with both execution flexibility and time to unlock the property’s full potential. Initial loan proceeds funded the acquisition, while a pari passu future‑funding mechanism ensured that capital improvements, tenant improvements and leasing commissions could be financed efficiently as milestones were achieved.

Future-funding tailored to milestones and modernization needs

The transaction was arranged in collaboration with JLL and marked another successful execution with a long‑standing sponsor. Tremont’s familiarity with the sponsor’s capabilities, combined with our deep understanding of the local industrial market, streamlined the approval and closing process - an advantage particularly important given the competitive environment for well‑located industrial assets.

The financing enabled the sponsor to secure a high‑quality industrial asset with near‑term income stability and long‑term value‑creation potential. Renovation work is expected to enhance building functionality and broaden appeal to institutional‑grade tenants, further strengthening the asset’s position in one of the region’s most dynamic industrial submarkets.