Progress Capital Arranges $160 Million Refinance for Jersey City West Side Apartment Complex
Making decisions about permanent financing is always difficult. Making these decisions during a turbulent rate environment makes it all the more challenging. In this case, a decision in March to enter into a 90-day rate lock by the owner of 3 ACRES Apartment Complex in Jersey City, was the RIGHT one.
Kathy Anderson, Founding Partner of Progress Capital began exploring options for a permanent loan with Art Johnson in November 2021 to replace construction financing for 629 MF units at 400 Claremont Avenue, Jersey City, aka 3 ACRES. The original plan was to refinance during the Third Quarter of 2022, as leasing only started in December 2021. Fast forward to February 2022… Russia invades Ukraine, inflation accelerates, and the 10-year treasury spikes.
The challenge was to secure a loan that would permit a forward rate lock PRIOR to stabilization. What was working is that leasing was off the charts. As a result of the right unit mix at an affordable rent and ‘over the top’ amenities, 3 ACRES became the place to live. Management retained The Marketing Directors who were able to lease over 100 units per month, which is an all-time record for Jersey City, no less the West Side.
WEST SIDE…THE NEW ‘IT’ LOCATION IN JERSEY CITY
If it looks like the ‘Squares’ (Journal, McGinley) of Jersey City have taken a backseat to the West Side, it’s because they have! The West Side, a neighborhood deemed as the next development hot spot, has officially emerged as the center of Jersey City’s new cycle of renaissance.
It’s the suburbs of Jersey City, filled with Victorian-style homes located just west of Downtown Jersey City near the banks of the Hackensack River. West Side has seen a significant influx of people, new investments, and interest in a short period of time. This diverse neighborhood is situated on either side of West Side Avenue, one of the city’s main shopping streets, offering an array of small businesses and boutiques, as well as a variety of ethnic eateries.
“We made a big bet on the West Side, believing that the positive transformation that has taken place here in recent years paved the way for a top-of-market rental building with an extraordinary amount of indoor and outdoor amenities and high-level services,” said Art Johnson, principal of 400 Claremont, LLC.
Progress Capital was established in 1990 and has closed over $40 Billion in commercial loans and $150 Million in directly funded bridge loans. As a commercial real estate mortgage 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.