3 Acres apartment complex in Jersey City secured a $160 million loan for 629 multifamily units at 400 Claremont Ave. in Jersey City, according to an announcement from Progress Capital.
Kathy Anderson, founding partner of Progress Capital, secured the loan after the client, Art Johnson, began to search for a permanent loan in November to replace construction financing. The original plan was to refinance during the third quarter of 2022, as leasing only started December 2021. Fast forward to February 2022, however, and Russia invades Ukraine, inflation accelerates and the 10-year Treasury spikes.
Anderson said the challenge was to secure a loan that would permit a forward rate lock prior to stabilization. What was working was 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 was leasing over 100 units per month, which is an all-time record for Jersey City, much less the West Side.
Cole Schotz provided 400 Claremont Holdings LLC strategic insight and direction in securing a short-term rate lock to structure, negotiate and close the loan amid surging interest rates.
The Cole Schotz team was led by member Leo Leyva, with support from members Robert Riva, Jennifer Horowitz, Adam Sklar, Robyn Pellegrino, Jeffrey Schechter and Rab Nalavala, and associates Isabelle Jacobs and Jonathan Goodelman.
The West Side of Jersey City has been deemed as the next development hot spot. It has officially emerged as the center of Jersey City’s new cycle of renaissance. Filled with Victorian-style homes located just west of Downtown Jersey City near the banks of the Hackensack River, the 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,” Johnson, principal of 400 Claremont LLC, stated.
