Madison Realty Capital provided $167 million in additional construction financing to developers of a four-building multifamily development in Jersey City, NJ, three years after supply $168 million in debt for the first phase of the project, Commercial Observer has learned.
Manhattan construction company, which is developing the 1,089-unit Emerson Lofts project, will use the amended loan to finance the conversion of an existing warehouse into a 140-unit apartment building and construct a 338-unit multi-family tower. This is Madison’s second raise for the multi-phase development and brings its total funding for the project to $395 million.
“The rapid rental of Hudson House in phase one demonstrates that Jersey City is experiencing strong demand for modern residential options along the waterfront, which is increasingly attracting financial institutions, advertising, technology, media and new businesses that enrich the population of the region”, Josh Zegen, chief executive and co-founder of Madison Realty Capital, said in a statement. “Offering the next phase of flexible financing to a repeat borrower with extensive experience developing institutional-grade real estate in New Jersey represents our unique ability to work closely with our borrowers and finance projects at every stage of acquisition, development and leasing.”
Zegen said at Commercial Observer’s Seventh Annual CRE Fall Fundraising Forum in New York, held last Thursday at the St. Regis Hotel, that a strong hire from the project so far was an attractive element of the deal, coupled with the warmth of Jersey City’s multi-family market. is. He said demand for apartments in New Jersey’s second-largest city will increase even more over the next few years due to the expiration of New York City’s 421a affordable housing tax exemption program.
Located at 315-326 15th Street, the Emerson Lofts development site will consist of three 26-storey high-rise residential buildings and a converted warehouse. The first phase of the project, Hudson House, is 95% let to date. It includes 351 units ranging from studios to three bedrooms, as well as 10,000 square feet of retail space and 308 parking spaces. Development amenities include an outdoor heated pool, cabanas, outdoor movie theater, fitness center, yoga room, and concierge services.
The second phase of Emerson Lofts, which is currently under construction, will feature a 338-unit tower with 119 parking spaces. The third phase, which is nearing completion, will convert an existing warehouse into a 140-unit multi-family property with 96 parking spaces and 36,500 square feet of retail space. The third and final high-rise property is in the pre-development phase of construction.
Manhattan Building Company officials did not immediately respond to a request for comment.
Andrew Coen can be reached at [email protected].