JERSEY CITY, N.J. — Progress Capital has arranged a $27.5 million construction loan for the development of a five-story apartment building in Jersey City. Located near the Mana Contemporary Fine Art Complex, the property will feature 265 apartment units and 5,700 square feet of retail space. The loan features a 30-day LIBOR plus 275 bps rate, floating for 24 months, with two 12-month extension options and 25 percent limited recourse. Senate Place Urban Renewal LLC is developing the project, which is currently under construction and expected to be ready for occupancy in third quarter 2015.
Northeast
BOSTON — Rockland Trust has provided financing for Holland Companies to develop two projects in Boston: a condominium building in Back Bay and a mixed-use property in the South End. Located at 451 Marlborough St., Four51 is a residential property that will feature 30,000 square feet of living space with eight luxury units ranging in size from 2,000 to 5,200 square feet. Construction began on the project, which was designed by Hacin Architects, in July 2013 and is scheduled for completion in spring 2016. Holland’s second project, Jordan Lofts, is a mixed-use property located at 477 Harrison Ave. in Boston’s South End. The building will feature 4,800 square feet of retail space and 12 residential units. Construction began in October 2013 and is slated for completion in spring 2015.
NEW YORK CITY — Ariel Property Advisors has brokered two sales totaling $2.3 million in Brooklyn’s Bushwick neighborhood. In the first transaction, a local investor acquired 17-17 Himrod Street, a 5,175-square-foot apartment building, for $1.2 million from a local investor. The three-story walk-up building features six residential units. In the second deal, an active local developer purchased a 40-foot wide development site at 189 Cooper St. from a private investor. The site, which offers approximately 8,000 buildable square feet, sold for $1.4 million or $130 per buildable square foot. Daniel Tropp, Jonathan Berman and Mark Spinelli of Ariel Property Advisors represented the sellers and procured the buyers in both transactions.
NEW YORK CITY — Teaneck N.J.-based Treetop Development has completed two transactions in New York City. In the first transaction, Treetop Development, along with its partner, Latus Partners, sold a four-building rental portfolio to E&M Associates for $29 million. The portfolio consists of 82 two- and three-bedroom apartments and 11 commercial spaces located at 1917 Seventh Ave., 110 St. Nicholas Ave., 120 West 116th St. and 100 West 116th St. Aaron Jungreis of Rosewood Realty Group brokered the transaction. Treetop Development utilized the first transaction as a springboard to acquire an apartment portfolio located on Adam Clayton Powell Boulevard in Harlem. The company purchased the portfolio of 41 rental homes and six commercial spaces from Sugar Hill Capital Partners for $11.25 million. The properties are located at 2261 Adam Clayton Powell Blvd., 2267-2269 Adam Clayton Powell Blvd., 2271-2273 Adam Clayton Powell Blvd. and a vacant lot at 2265 Adam Clayton Blvd. Peter Vanderpool of Cignature Realty served as broker for the transaction, while Efram Friedman of Herrick Feinstein provided legal counsel to Treetop Development.
JERSEY CITY, N.J. — Concord Hospitality Enterprises has started construction on Hyatt House hotel located within the Exchange Place district of Jersey City. Located at One Exchange Place, the 13-story, 258-room extended-stay hotel will feature 10,000 square feet of street-level retail space, a rooftop, outdoor lounge and upper-level lobby. The hotel is part of a public/private revitalization effort that will bring 350 construction jobs and 80 permanent and 60 part-time hotel jobs to the area. The development will involve the renovation and expansion of an existing building and the demolition of other abandoned structures to allow for the 10,000-square-foot addition. The project is an adaptive re-use of a 92-year-old bank building and represents an investment of more than $90 million in Jersey City that will produce more than $1.6 million in annual revenue to the city. The hotel is expected to open as early as December 2015.
NEW YORK CITY — Madison Realty Capital (MRC) has provided $19 million in debtor-in-possession (DIP) funding for a residential conversion project in Midtown South. The DIP funding prevented a forced sale through the Chapter 11 Bankruptcy process and will enable the borrower to retain control of the property. Located at 11 East 36th St. and built in 1912, the 14-story, 68,727-square-foot property was originally an office building. The borrower is redeveloping the asset as a 66-unit residential condominium building with two ground-floor retail condominium units and 5,320 square feet of second-floor office space. MRC completed the DIP funding within a short timeframe to avoid the property being sold at bankruptcy auction. Proceeds of the first mortgage loan from MRC will be used to retire previous debt, simplifying the capital stack and permitting the borrower to proceed with the sellout of residential condominium units through the bankruptcy process.
NEW YORK CITY — Eastern Consolidated has arranged the sale of 15-17 West 116th Street, a mixed-used property in Central Harlem. Malcolm Shabazz Court LLC sold the property to 15 West 116 LLC for $13.8 million in an off-market transaction. Constructed in 2005, the nine-story building features 38 apartment units and ground-floor retail space. The property is under a 20-year 421A tax abatement program with 12 years remaining, which does not prohibit the owner from acquiring new financing from any institutional lender. The transaction was subject to the purchaser being approved by two city agencies (The NYC Department of Housing Preservation and Development and Housing Development Corp.), along with the assumption of subsidized financing. Peter Carillo and Andrew Sasson of Eastern Consolidated represented the seller; Carillo also procured the buyer in the transaction. Gregory Reid of Reid Rodriguez & Rouse provided legal counsel for the seller, while Ira Nesenoff of Nesenoff & Miltemberg was the attorney for the buyer.
NEWARK, N.J. — Teaneck, N.J.-based The Aspen Companies has acquired a HUD-supported apartment building in downtown Newark for $3 million. Located at 75 Lock St., the three-story property features 50 units with a mix one-, two- and three-bedroom layouts. The buyer plans to implement an aggressive capital improvement program to the property, including upgrading common areas, hallways and the exterior, improving building systems and renovating apartments. The property is located adjacent to the New Jersey Institute of Technology and near the New Jersey Performing Arts Center. The apartment building was 100 percent occupied at the time of sale.
DOYLESTOWN, PA. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $25.6 million loan for the acquisition of a high-rise residential building in Doylestown. The buyer plans to continue to convert the building from a seniors housing to market-rate multifamily units. Additionally, the new owner plans to streamline operations and enhance the property with additional apartments and more community amenities. John Banas and Kristopher Wood of MMCC’s Philadelphia office arranged the 10-year loan, which features a 4.1 percent fixed rate, an 80 percent loan-to-value ratio and a 30-year amortization schedule.
NEW YORK CITY — Eastern Consolidated has arranged the sale of a three-building, mixed-used portfolio located in the Hamilton Heights neighborhood for $15.5 million. The portfolio includes a 19,150-square-foot building at 3600 Broadway, an 11,500-square-foot property at 3604 Broadway, and a 13,053-square-foot asset at 3610 Broadway. The portfolio, which totals 43,703 square feet, is occupied by Dunkin’ Donuts, Baskin-Robbins and The Chipped Cup, among others. Matthew Sparks of Eastern Consolidated represented the seller and procured the buyer for the transaction. Jeffrey Goldberg of Sadis & Goldberg LLP provided legal counsel for the buyer, while Robert Teitelbaum of Konner Teitelbaum & Gallagher provided legal counsel for the seller.