Progress Capital Arranges $4.2 Million in Acquisition Financing of Jersey City Mixed-Use Property
In a recent acquisition financing, Brad Domenico of Progress Capital secured a $4,200,000 acquisition loan for a valued client to purchase 236-238 Newark Avenue, Jersey City.
CHALLENGE: Brad had to not only locate a lender in the midst of a global pandemic, but he was also tasked by the borrower to obtain financing that includes release provisions in the event he decides to sell units as condos.
SOLUTION: The loan was provided by a regional bank with terms that include:
- 5 Year fixed rate
- 10% Limited Recourse
- Release provision if the Borrower decides to sell units as condos
- No prepay upon sale of individual units to third-party purchasers
- 30 Year amortization with P&I adjustments upon releases
The 5-story building contains 17 mixed-use units with a total net rentable area of 14,244 SF. The property is comprised of 3 ground floor retail units as well as 14 residential apartments located directly above. The residential unit mix is made up of (6) one-bedroom units, (7) two-bedroom units and (1) three-bedroom unit.
The site is situated in the Village section of Historic Downtown Jersey City. The Village neighborhood is a thriving arts and cultural scene known for its trendy restaurants, cafes and local small shops. The Newark Avenue Pedestrian Plaza is home to a variety of Street Fairs, Concerts, and Farmers Markets and many events throughout the year. Centrally located, the property is just a short walk to the Grove Street PATH Station and all major public transportation, making it a commuter’s paradise.
Progress Capital is a commercial real estate advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. Since 1990, we consistently get our clients to the closing table… plain and simple!
