Spitzer Snags $110M Loan at First Jersey City Development
Eliot Spitzer is putting the icing on the cake of his first Jersey City development with permanent financing.
Spitzer Enterprises and partner Arden Group landed $109.5 million in debt from Northwestern Mutual for their multifamily property at 425 Summit Avenue, the Commercial Observer reported. The debt retires the construction loan for the 390-unit development in the Journal Square neighborhood.
The 27-story building is within a half mile of the Journal Square PATH station. The units are 98 percent leased, according to CBRE, and the building features amenities such as a fitness center, a coworking lounge, a golf simulator and pet spa. There’s also retail space on the ground floor.
A CBRE team including Matthew Pizzolato, Jason Gaccione and Jake Salkovitz arranged the debt. The developers did not respond to requests for comment.
The news is positive for Spitzer, who is dealing with bumps and bruises a tunnel away.
Last month, Spitzer filed a lawsuit against New York’s Division of Homes and Community Renewal, alleging “potential intentional misconduct” and unjustified delays in processing his application to demolish 985 Fifth Avenue.
Although Spitzer received Landmarks Preservation Commission approval three years ago for a luxury condominium project, he needs DHCR’s permission to non-renew six rent-stabilized leases at the building to proceed.
The lawsuit, which cites a sworn statement from a former DHCR official regarding political pressure, claims that the agency has failed to act despite Spitzer meeting requirements and securing more than $100 million in project financing.
Speaking of project financing, there’s plenty going around in Jersey City.
Last month, the Namdar Group secured $180 million in debt from Affinius Capital for its project at 35 Cottage Street in the Journal Square neighborhood. The refinancing supports the 27-story, 564-unit luxury multifamily property going up a short walk from the local PATH station.
Last August, Adi Chugh’s Tyko Capital provided $358 million in construction financing for Namdar’s projects at 29 Van Reipen Avenue and 612 Pavonia Avenue, enabling the firm to start work on the two developments, which will carry a combined 1,126 units between them.
Four months earlier, Hudson Bay Capital Management provided the company with $335 million to refinance a trio of multifamily buildings, all in the same Journal Square neighborhood.
Read more
Spitzer accuses state of “potential intentional misconduct” for delaying demolition of 985 Fifth Avenue
Namdar nabs $358M loan for two Jersey City projects
Namdar Group grabs additional financing in Jersey City
