A major New Jersey real estate developer has secured financing for a multifamily development in Hudson County. Industry sources report that Kushner Real Estate, which is based in Bridgewater, has closed a deal that will provide it with the $50.4 million it needs to complete the 200-unit luxury project. The money will come in two installments from People’s United Bank and PNC Bank. The first $5.4 million is a pre-development loan, and the remaining $45 million will be made available in the form of a construction loan that must be paid off or refinanced after three years.
KRE began working on the project in mid-2018 and expect work to be completed by early 2020. The development, which is known as Harbor Station North, is the company’s first project in the Gateway Region. When it is completed, Harbor Station North will boast three blocks of luxury rental accommodation and approximately 10,000 square feet of upscale retail space. Industry experts expect the apartments and stores to be rented quickly because the location is just a short walk from the Hudson-Bergen Light Rail service to Jersey City.
The project is part of a major redevelopment of the Military Ocean Terminal at Bayonne. The area has drawn many of the region’s leading commercial real estate companies in recent years as it transitions from an industrial area to a major residential and commuter hub. The Harbor Station North financing package is the second major deal involving KRE announced in recent months. In January, the company obtained $258 million in financing for a project in the Journal Square development in Jersey City.
Commercial real estate construction loans must usually be repaid after a few years, and finding banks willing to extend credit can be difficult for developers if the project is not attracting as many tenants as anticipated. An experienced New Jersey and New York construction law firm could help developers in this kind of situation to weigh their legal options and assess the merits of non-traditional lenders that do not have to conform with federal and state banking regulations.
Source: Multi-Housing News, “New Jersey Project Scores $45M Construction Loan”, Greg Isaacson, May 9, 2019
