Sky-high interest rates didn’t prevent Brookfield Properties and G&S Investors from landing a large financing deal for a supertall mixed-use tower near the Jersey City waterfront.
In a moment of numerical synergy, the joint venture partners scored a $420 million construction loan for their gigantic project at 420 Marin Boulevard, the Commercial Observer reported. The 60-story tower, which will include 802 market-rate units and retail space, is part of Brookfield and G&S’ 18-acre, master-planned development known as Hudson Exchange.
Union Labor Life Insurance led the construction financing. Other participants included Washington Capital Management and AFL-CIO Housing Investment Trust.
The 1.3 million-square-foot building, expected to cost $620 million, will include an 85,000-square-foot ShopRite at its base, replacing an existing store the supermarket chain has had on the site for almost three decades. Surrounding the tower will be 20,000 square feet of public green space and a dog park. Beyer Blinder Belle is the architect, while Consigli Construction is the contractor.
The tower will rise a block west of Hudson Exchange’s first phase, a pair of 35-story luxury rental towers called VYV North and VYV South, which are now fully leased, according to Brookfield.
While commercial real estate financing has been difficult to come by in recent months, it’s not the first major loan to be given out in Jersey City this year. In March, Building and Land Technology landed one of the largest Freddie Mac single-asset financing deals ever, bagging a $257 million loan from Greystone for a six-building multifamily complex at 20 Beacon Way. That project will deliver 1,155 units.
— Holden Walter-Warner
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