Madison Realty Capital has provided a $168 million loan collateralized by the Emerson Lofts, a planned 1,000-unit mixed-use residential development project at 315-326 15th St. in Jersey City, N.J.
The loan allows the borrower, Manhattan Building Co., to complete the first phase of the fully approved project and will fund predevelopment on three subsequent phases. Phase I consists of a 26-story tower with 350 residential units, more than 10,000 square feet of retail, an approximately 24,000-square-foot community center, a public park and parking. The building will benefit from 305 feet of frontage along 14th Street and 200 feet of frontage along Coles Street.
“This highly reputable sponsor has extensive experience developing institutional quality real estate in Northern New Jersey, having successfully executed similar business plans in the immediate area,” said Josh Zegen, co-founder and managing principal of Madison Realty Capital. “We are confident we will be able to replicate the success of the sponsor’s past projects, given that this property will fill a market need for additional high-quality residential units in Jersey City, which continues to benefit from recent surges in population and income growth as well as its proximity to Manhattan.”
In line with the borrower’s past projects in the immediate area, the SoHo Lofts and the Cast Iron Lofts, the property is poised to capitalize on the positive demographic trends that have transformed Jersey City in recent years. The sponsor flawlessly executed its business plan on the 377-unit SoHo Lofts property, which sits around the corner from Emerson Lofts, recently selling the property for nearly $264 million, or approximately $700,000 per unit.
Emerson Lofts will benefit from the same market fundamentals and a similar above-market amenities package, including a large, resort-style lobby; a 28,000-square-foot outdoor roof deck with pool; and a fitness center and spa.
The property is located in prime Jersey City, just across the Hudson River from Manhattan. It is situated immediately off I-78 and the Holland Tunnel, just minutes from Hoboken and between two PATH rail stations at the Newport station and the Journal Square Transportation Center. It is located in the high-growth Jersey Avenue Park redevelopment area, which is slated to be transformed by a downtown redesign plan through which the City of Jersey City has agreed to fund new streets, seating areas and lighting.
