Luzern Associates acquires three-building, nearly 200,000-square-foot Cherry Hill portfolio in Danvers
DANVERS, Mass. — Northwest Bank has provided $34.5 million in financing to support Luzern Associates LLC’s $47.75 million acquisition of the Cherry Hill industrial portfolio in Danvers, expanding the bank’s commercial real estate lending activity in the Greater Boston market.
The portfolio consists of three industrial buildings totaling nearly 200,000 square feet in Boston’s North Shore region. The properties are fully occupied, with Medtronic, one of the world’s largest medical device companies, accounting for approximately 70% of the portfolio’s total square footage.
The properties are also home to companies operating across several sectors, including life sciences, manufacturing, home services and technology.
Northwest Bank provided a commercial real estate loan for the acquisition, while the remaining purchase price was funded through equity from a strategic investor.
“The Cherry Hill acquisition highlights what Northwest does best,” said Adam Dubeshter, Commercial Real Estate Commercial Relationship Manager at Northwest Bank. “We pair the capital markets expertise, industry knowledge and financing capabilities needed to support significant commercial real estate transactions with the responsiveness and personal attention clients expect from a neighborhood bank.”
The Cherry Hill portfolio benefits from its location within the Greater Boston industrial market, with access to major transportation corridors and proximity to a concentration of life sciences, manufacturing and technology companies.
For Luzern Associates, the transaction adds a significant industrial asset to its portfolio of properties across the Northeast and Mid-Atlantic regions.
“Northwest distinguished itself through its attentiveness, certainty of execution and ability to structure a financing solution that met our needs,” said Nicholas Campofranco, principal and chief investment officer of Luzern Associates. “Their team understood both the asset and the market, and they delivered exactly what they committed to throughout the process.”
Financing Institutional Real Estate
The transaction was handled through Northwest Bank’s Institutional Commercial Real Estate platform, which provides customized financing solutions to experienced real estate sponsors, private equity firms, REITs and institutional investors east of the Mississippi River.
The platform provides financing for acquisitions, development, redevelopment and recapitalization across multiple property types. Northwest said its approach combines industry expertise, relationship-based service and the resources of a full-service financial institution.
The Cherry Hill financing demonstrates the bank’s ability to structure transactions for institutional-quality sponsors while providing financing capacity and execution for large commercial real estate investments.
Advisers on the transaction included Nick Bass, partner at Bricker Graydon Wyatt; James Moore, real estate paralegal at Bricker Graydon Wyatt; and Andrew Stone, senior vice president at CBRE.
Luzern Associates LLC is a vertically integrated real estate private equity firm based in Greenwich, Connecticut, with approximately $150 million in assets under management. Founded in 2005, the firm develops, owns and operates industrial, office and multifamily properties throughout the Northeast and Mid-Atlantic.
Luzern specializes in acquiring underutilized properties and implementing redevelopment strategies intended to improve property performance and unlock value.
Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest is a full-service financial institution offering business and personal banking, employee benefits and wealth management services.
The bank operates 152 full-service financial centers and 11 drive-up locations across Pennsylvania, New York, Ohio and Indiana and provides customers with fee-free access to more than 55,000 ATMs.
The Cherry Hill transaction adds to Northwest Bank’s commercial real estate activity in key growth markets and underscores its focus on providing financing solutions for complex real estate investments.
