Madison Realty Capital Upsizes Loan to $395M for NJ Property – Multifamily Real Estate News
Manhattan Building Co. has upsized its initial loan from real estate private equity firm Madison Realty Capital again to a total commitment of $395 million as it moves into its next phase of development at Emerson Lofts, a 1,089-unit, mixed-use property in Jersey City, N.J.
The amended loan will be used to complete the conversion of an existing warehouse building into a 140-unit multifamily property with 96 parking spaces and 36,500 square feet of retail space.
The Jersey City-based developer borrowed $168 million from Madison Realty Capital in November 2019 to complete the first phase of the fully approved, four-phase project at 315-326 15 St. In addition to the 26-story, 351-unit residential tower, the first phase included more than 10,000 square feet of retail, a community center, public park and parking. The tower, Hudson House, is 95 percent leased and consists of studios, one-, two- and three-bedroom units. Amenities include a heated outdoor pool, cabanas, outdoor movie theater, fitness center, yoga room and concierge services.
MBC upsized the loan to $228 million earlier this year for the second phase of the development, which is currently under construction. It will include a second 26-story tower with 338 apartments and 119 parking spaces.
The final phase of construction includes plans for a third high-rise residential property that is in pre-development. Further details on the tower and a timeline for its completion as well as the delivery of the warehouse conversion were not disclosed.
Emerson Lofts is located at the site of the former Emerson Radio factory and is situated near the Newport PATH train station and the entrance to the Holland tunnel connecting New Jersey to Manhattan. The property also has access to Interstate 78 and is close to Hoboken, N.J., as well as the Journal Square Transportation Center in Jersey City.
MBC has also built the nearby Soho Lofts, a 377-unit property completed in 2018 and sold to Roseland Residential Trust, now known as Veris Residential, in April 2019 for nearly $264 million, or $700,000 per unit. The developer, which focuses on Jersey City and Hoboken, built Cast Iron Lofts, a 387-unit community that is also near Emerson Lofts.
Madison realty deals
In October, Madison Realty Capital provided a $32 million loan to Vibrant Cities to refinance Pivot Apartments, a recently completed eight-story, 95-unit mixed-use property in the Capitol Hill neighborhood in Seattle. The building was 69 percent leased at the time of the financing. It also has 4,900 square feet of ground-floor retail leased to three tenants.
A month earlier, Madison Realty Capital had provided a $315.6 million loan to Carpenter & Co., Inc., and Woodward Interests, LLC, to complete the renovation of the Four Seasons Hotel and Residences New Orleans. The 341-key hotel opened in July 2021 and is part of a 33-story mixed-use tower that has 92 residential towers on the top floors. As of September, half of the condos, which include one- to three-bedroom apartments and four-bedroom penthouses, had been sold.
Also in September, the firm provided an $85 million loan to The Related Group, BH Group, Teddy Sagi’s Globe Invest and Wanxiang Group Corp. for the acquisition and pre-development of a 6.51-acre land parcel with approved plans to develop a 51-unit luxury condo project on Fisher Island in Miami Beach, Fla. It’s the last remaining condo development site on the private island.
