Developer Art Johnson has landed $120 million in financing for a mixed-use project his firm is building in Jersey City.
The financing for 400 Claremont Avenue is split between an $84 million construction loan and $36 million in equity, according to Johnson and Progress Capital founding partner Kathy Anderson, who arranged the deal. The loan comes from Emanuel Stern’s Tall Pines Capital, while the equity was purchased by private investors.
“We think it’s a terrific project in a terrific location,” said Tall Pines Managing Principal Emanuel Stern.
The development, known as The Element, will stand six stories tall with 631 residential units, 277 of which will be “micro-units” smaller than 500 square feet. It will feature more than 70,000 square feet of amenities, including a yoga studio and an outdoor bar. Tenants will have access to private shuttles to the PATH train.
It will also include 279 parking spots and 15,500 square feet of retail.
Johnson’s 400 Claremont LLC bought the former manufacturing site in 2018 for $17 million. The building should be ready for people to move in by August 2021, he said.
The project is a key component of the revitalization of Jersey City’s West Side, according to Progress Capital’s Anderson.
“It’s a really important project for the West Side of Jersey City because it hasn’t seen development like this,” she said, “and being by the light-rail station is a good representation of how the West Side is developing.”