JLL and Progress Capital said on Monday that they worked on behalf of the partnership between SHIFT Capital, the Hanini Group and CoInvestment Partners to secure a three-year, $113.5 million floating-rate loan with ACORE Capital to acquire the Broad & Halsey Street Portfolio in Newark.
SHIFT Capital, Hanini Group and CoInvestment Partners recently announced they joined together to acquire three buildings integral to Newark’s growing Central Business District, which consist of 707 Broad St. and 153 Halsey St., totaling more than 816,000 square feet of office, and a 901-space parking garage at 261 University Place.
Originally built in the 1920s, 153 Halsey St. and 707 Broad St. are leased on a long-term basis to the state of New Jersey, which houses more than 3,500 employees across 35 departments on site. The properties are positioned in the heart of the multitower Prudential Insurance Campus in Newark’s Central Business District.
The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Michael Klein and Jon Mikula and Director Matthew Pizzolato, alongside Partner Brad Domenico from Progress Capital.
“The sponsor developed a thoughtful business plan designed to create tremendous long-term value for Newark and build on its rich history of innovation and civic engagement,” Pizzolato said. “ACORE Capital recognized the value created by the team and stepped up to offer a high-leverage, structured debt solution that will allow the sponsor to execute their business plan.”
The funds were used to acquire the property and will fund future capital expenditures and leasing costs.
Development on 707 Broad St. and 153 Halsey St. is scheduled to begin early next year, which will include activating the rooftop at 707 Broad, upgrading the systems to cater to a post-COVID environment and renovating almost all the spaces throughout the buildings.
