The Metropolitan at 1400 Clinton St. in Hoboken — Courtesy: Advance Realty
By Joshua Burd
Only weeks after opening its new luxury rental community in northwest Hoboken, Advance Realty has expanded its footprint in the area with the acquisition of a neighboring complex.
The developer announced Feb. 16 that it had acquired The Metropolitan, a 128-unit residential and retail property at 1300 Clinton St. Advance plans to make significant upgrades at the roughly 15-year-old property, which is made up of two parallel five-story buildings connected by an elevated, landscaped courtyard.
In a subsequent announcement Tuesday, HFF said it represented the seller, AEW Capital Management LP, in what was a $77 million trade. The buyer AEW was acting on behalf of one of its institutional separate account clients.
The property is adjacent to Harlow, Advance’s new 140-unit building at the corner of 14th Street and Willow Avenue. Along with its high-end rental units, Harlow will be home to the first Trader Joe’s supermarket in Hudson County starting later this year.
“Our investment in The Metropolitan is an important step in our continued effort to grow Advance Realty’s dedication to Hoboken,” Peter Cocoziello, CEO and president of Advance Realty, said in a prepared statement. “We love Hoboken, and the acquisition of this beautiful apartment community reflects our commitment to the city.
“Like Harlow, we view The Metropolitan as a long-term investment.”
The HFF investment sales team representing the seller was led by Senior Managing Director Jose Cruz, Managing Director Kevin O’Hearn and directors Michael Oliver and Stephen Simonelli. The HFF debt placement team representing Advance was led by senior managing directors Jon Mikula and Jim Cadranell.
Chris Bellapianta and Dave Surti of Camber Capital served in an advisory role.
“We are grateful for the body of work Chris and Dave put in over their years at Advance and are excited to partner with Camber on their future endeavors and witness the continuation of their success,” said Alexander Cocoziello, principal and vice president of investment for Advance.
Camber, in partnership with Advance, acquires middle-market properties in the New York metropolitan area.
The Metropolitan, which is a mile from the Lincoln Tunnel, also features an above-ground parking garage and amenities such as a fitness center, residents’ lounge, clubroom and a package concierge system, Advance said in a news release. The property is located at the gateway entrance to Hoboken, near the 14th Street viaduct, which recently underwent a $54-million renovation to allow for continuous traffic flow.
This winter, Advance sponsored the creation of the Harlow Winter Village, a municipally operated pop-up skating rink located underneath the viaduct. The area was recently renovated with new walkways, brick architecture and closed-off cobblestone streets, along with a new pocket park.
“The positive experience we had working with City of Hoboken officials, local stakeholders and the community throughout the development and opening of Harlow played a large part in our decision to acquire The Metropolitan,” said Daniel Cocoziello, principal and vice president of development and operations for Advance. “We believe in and support the city’s vision for smart, mixed-use development that promotes the character and growth of the neighborhood.”
In a separate statement, Cruz touted the continued appeal of the Hudson waterfront.
“The Hoboken/Jersey City market continues to attract institutional capital and is currently one of the hottest investment markets in the Northeast,” Cruz said. “The asset is poised for repositioning and offers a significant amount of upside.”
(Editor’s note: This story has been updated with the sale price, the name of the seller and a quote from HFF’s Jose Cruz.)