$27 Million Acquisition Loan Arranged for Kearny Multifamily Property
Brad Domenico of Progress Capital secured a $27,000,000 loan for the acquisition of “General Kearny Apartments”, a 6-building multifamily property located at 41-109 Belgrove Drive in Kearny, NJ.
The borrower, Robert Tagliareni has over 40 years of experience investing in commercial real estate properties throughout New Jersey, focusing on mixed-use, multifamily, retail and office assets. In this latest acquisition, Robert saw immense upside and opportunity for the property, but was met with some challenges from the seller, who owned the property for 17 years.
Brad Domenico along with selling brokers Niko Nicolaou and David Oropeza of Gebroe Hammer worked together as a team to tackle the timing challenges imposed by the seller to close within the expected time frame.
“Each deal has their own set of challenges. When working with a difficult seller, it is important to have a strong, knowledgeable team to aid in working through such challenges so that our client’s needs are met. Niko is a rock star so I knew having him involved would help immensely” Brad said.
Luckily, securing financing for the deal proved to be less challenging. Brad worked with Michael Strauss from ConnectOne Bank to get an excellent financing structure to meet the borrower’s needs.
“Michael was great to work with. He was very accommodating and provided what we needed to allow time and an interest-only period for my client to implement his plan for the property. ConnectOne is a class act and a pleasure to work with.”
General Kearny Apartments is a 6-building, 171-unit, all brick property located in Kearny, New Jersey which is a highly desirable transit market in Hudson County with no rent control. The property sits on a beautifully renovated 3-acre site and offers one, two and three-bedroom units. The borrower’s plan is to immediately inject $1,000,000 of capital into the property. Such improvements will include; roof upgrades, technology to monitor the heating systems throughout the buildings, updating all common and lobby areas, installing LED lighting, replacing every door and upgrading the basement including repainting and cleaning all mechanicals.
Over time, the seller had invested extensively in exterior building renovations and landscaping since purchasing the property 17 years ago. A leading architect was retained to design and oversee the improvements. Renovations included new windows, new exterior doors, new entry awnings, new railings/fencing, new courtyards, new centralized mailbox access, new brick pointing, parapet waterproofing, new sidewalks throughout the property and new landscaping.
The property also features well-manicured grounds with seasonal plantings, new concrete walkways, modern railings and decorative brick work. The property also benefits from on-site laundry facilities and parking/storage which generate additional cashflow plus on-site leasing office and maintenance services. Street parking for tenants and 29 off-street parking spaces are available for a fee.
General Kearny Apartments is in the heart of the Belgrove neighborhood adjacent to other luxury housing, abundant shopping including a supermarket-anchored power center and upscale retail. Within walking distance is the “Kearny Connection”, dubbed the Midtown Direct, with service directly to New York’s Penn Station. There is no need to travel to Hoboken for PATH service. The $70 million-dollar project cut travel time for commuters by 20 minutes.
“Sometimes it takes a little more muscle to make a deal happen but it’s nothing we can’t handle. That’s why having strong lending relationships in the industry are important. We’re really excited to see Bob’s vision of the property come to life. It’s one of the pleasures of the job to see neighborhoods transform.” Brad concluded.
Since 1990, Progress Capital has closed over $40 Billion in commercial loans and $150 Million in directly funded bridge loans. As a commercial real estate advisory firm, we can advise you on any real estate investment you are considering and provide the financing advice you need to manage through the commercial real estate acquisition and/or financing process. We consistently get our clients to the closing table… plain and simple!