UPDATED Nov. 15, 2021, 3:47 p.m.: Namdar Group secured a $96 million construction-and-land loan for two multifamily development projects in Jersey City.
The Long-Island based developer received $73 million for construction of a 235-unit building at 26 Van Reipen Avenue. It also secured $23 million to replace the existing land acquisition loan for a nearby parcel at 626 Newark Avenue, where the developer plans to build 576 units.
Scale Lending, a Slate Property Group affiliate, provided the combined loan, brokered by Greystone’s Drew Fletcher and Matthew Hirsch. Both projects are in Journal Square, a business district and residential area with a transit hub.
The loan was the second Namdar Group has received from Scale. In March, the developer scored a $120 million construction loan for a 27-story, 432-unit project at 618 Pavonia Avenue, also in Journal Square, Commercial Observer reported.
Across the nation, apartment rents have quickly recovered from the pandemic dip, and with supply short, developers are hurrying to build more. In New York City, nearly 3,000 units were proposed in October alone.
In Jersey City, the average rent for a one-bedroom apartment was $3,270 in September, up 23 percent from a year ago, according to Apartment Guide. Still, Jersey City rents look affordable compared to New York City, where the average rent for a one-bedroom apartment was $4,887 in September, up 58.2 percent from a year ago.
Nonbank real estate lenders such as Slate have been playing a major role in the multifamily construction uptick, assisting developers needing short-term loans. Scale Lending has lent more than $1 billion in the past 18 months, according to the company.
Correction: An earlier version of this story misstated the nature of the $23 million loan.