UPDATED Jan. 13, 2022, 7:39 p.m.: Sequoia Development Group scored $95 million in construction financing for a multifamily high-rise in Jersey City amid an influx of projects by New York developers.
Sequoia, led by Israel Neiman, secured financing from Parkview Financial and Montgomery Street Partners to build a 16-story, 300-unit multifamily project at 711 Montgomery Street.
Carlton Group CEO Michael Campbell and managing director Kyle Morque arranged the financing.
“This was a very complex transaction with many moving parts,” said Morque.
Morque and Campbell said the financing was complicated since they split the fee ownership. The group sold the fee — or the land beneath the building — and secured a leasehold construction loan at the same time. As a result, Sequoia was able to nab financing at a much higher leverage point.
The project is in Jersey City’s McGinley Square neighborhood. The building will sit about a half mile from the Journal Square transport center, where residents can ride the PATH into Manhattan. Sequoia is also building a luxury apartment property nearby at 55 Jordan Avenue in Journal Square.
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Jersey City is becoming a hot destination for luxury high-rise apartments as developers entice Manhattan workers who want more space and amenities.
Kushner Companies plans to build two massive 64-story towers in Journal Square. In the same neighborhood, HAP Investments is planning to build a 42-story apartment building.
Sequoia has been an active player in Brooklyn. The company converted a former warehouse at 456 Johnson Avenue in Williamsburg to an office-retail space. In 2016, Sequoia’s Neiman and a partner bought a nursing home in Flatbush.
Correction: A previous version of this story stated that Sequoia had the option to purchase the land in 30 years, based on information from Carlton Group. After the article’s publication, Carlton Group and the landowner, Montgomery Street Partners, said that information is inaccurate.