$26,250,000 Secured for New Mixed-Use Tower at Site of Former Fairmount Hospital in Jersey City
Brad Domenico, partner at Progress Capital, negotiated a $26,250,000 construction to permanent loan secured by two parcels of land for the construction of a new 9-story mixed-use, residential and retail, building on Summit Avenue in Jersey City. At present one parcel of land is vacant, while the second is improved by a vacant 3 story brick hospital building formerly known as the Fairmount Hospital. The parcels of land combined encompass two corner properties at the intersection of Summit and Fairmount Avenues and the other adjoining at the intersection of Clifton Place and Fairmount Avenue.
Purchased in 2015, the new development consists of a 159,861 SF mixed-use elevator building containing 99 luxury residential units including 24-hour concierge, fitness center, residential lounge with conference room, rooftop terrace/garden and one 2,240 SF street level retail unit with a 75 space below grade parking garage.
“Jersey City has seen a complete transformation over the years in residential and commercial development. This new construction represents the continued fervor at which the redevelopment continues – this being one of the first major new projects in the McGinley Square section of Jersey City just south of both downtown and Journal Square – where we have seen the bulk of repositioning thus far.”– Brad Domenico
Domenico negotiated the amount and terms of the loan with Michael Savarese of Sterling National Bank. The terms include an 18-month interest-only period floating over LIBOR. The borrower will have two optional 12 month extensions on the construction phase. Upon stabilization the borrower has the option to convert to a permanent mortgage. This loan represents a 65% Loan to Project Cost.
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