$3,800,000 Arranged for the Acquisition / Renovation of Historic Newark Office formerly known as “The Sandstone Building.”
A $3,800,000 construction to permanent loan was arranged by Brad Domenico of Progress Capital Advisors for a valued client to acquire and renovate “The Sandstone Building,” an 8-story historic Newark property built in 1900. The building is located within Newark’s designated ‘Billion Dollar Triangle’ – an area anchored by Newark Penn Station, the Prudential Center and NJPAC. Formerly the home of Seton Hall University Law School, the 21,503 SF property currently has the United States Postal Service on the ground floor, 2 floors of office tenants and 5 floors delivered vacant.
The borrower intends to first attract office tenants for the 5 vacant floors by providing custom fit-outs, while also upgrading the building’s entrance, exterior and interior finishes. Once renovations are completed, the borrower will have repositioned the property into a Class A office building allowing the owners to offer high-end office space at a lower cost per square foot than surrounding competitors.
Key terms of this loan include:
- Construction to Permanent Loan
- 18 Months Interest Only During Construction Phase
- 13 Year Term on Permanent Loan
- No Prepayment Penalty or Exit Fee
- 75% Loan to Project Cost
- Interest Only Rate: WSJP +.625 w/ a floor of 4.375%
- Permanent Rate: FHLBNY plus 2.00%
Progress Capital is a commercial real estate advisory company serving clients since 1990. With over $40 Billion in closed loans and $150 Million of directly funded bridge loans, we will get you to the closing table… Plain and Simple. #thatsProgress