SCALE Lending has announced the completion of a US$96 million combined construction and land loan in Jersey City’s Journal Square. The financing allows for the construction of up to 811 additional dwelling units. It will pay for the ground-up construction of a 235-unit multi-family building at 26 Van Reipen Avenue, as well as the purchase of 400,000 square feet of fully-entitled property at 626 Newark Avenue, which permits for the construction of 576 future apartments.
Namdar Group will build the 235-unit project, with AJD Construction serving as a general contractor. Jersey City’s Journal Square area is home to the development. It is close to a lively commercial sector at Journal Square as well as the PATH line.
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Namdar Group an opportunity for SCALE lending
“Working with the Namdar Group, an institutional developer with a solid track record in the industry, is a fantastic opportunity for SCALE.” “We believe in working with top-tier sponsors on a consistent basis as their portfolios develop,” stated Martin Nussbaum, Co-Founder, and Principal of Slate Property. “In such a competitive and vibrant market, SCALE used its relationships with the borrower and broker to think creatively outside the box in order to execute a complicated deal structure.” This deal exemplifies SCALE’s ongoing development throughout the New York Metropolitan region.” Greystone arranged the finance, and the loan is the latest for SCALE Lending, a Slate Property Group affiliate.
According to Apartment Guide, the average rent for a one-bedroom apartment in Jersey City in September was US$3,270, a 23 percent increase over the previous year. Still, Jersey City prices appear to be cheaper than those in New York City, where the average rent for a one-bedroom apartment was US$4,887 in September, up 58.2 percent from the previous year. In the last 18 months, Scale Lending has financed more than US$1 billion.
