Namdar Group is planning 235 luxury apartments at 26 Van Reipen Ave. in Jersey City, as depicted in this rendering — Courtesy: SCALE Lending
By Joshua Burd
A developer has landed nearly $100 million in financing to both break ground on 235 apartments and acquire a nearby site that is approved for another 576 units, with both parcels located in Jersey City’s historic and re-emerging Journal Square neighborhood.
In a news release Friday, SCALE Lending said it completed the $96 million combined construction and land loan to Namdar Group, which recently completed a 15-story rental property on Newkirk Street. Proceeds will support the ground-up construction of the 235-unit project at 26 Van Reipen Ave., which is adjacent to the Journal Square transportation hub, as well as Namdar’s purchase of the 400,000-square-foot, fully entitled tract at 626 Newark Ave.
Greystar brokered the transaction.
“To be able to work again with the Namdar Group, who is an institutional developer with a proven track record in the marketplace, is a great opportunity for SCALE,” said Martin Nussbaum, co-founder and principal of the affiliated Slate Property Group. “We believe in working with top-tier sponsors on a repeated basis as they grow their portfolios. In such a competitive and exciting market, SCALE used its relationships with the borrower and broker to creatively think outside of the box to execute a complex deal structure. This transaction is yet another example of SCALE’s continued expansion throughout the New York Metropolitan area.”
AJD Construction will be the general contractor for the Van Reipen Avenue project, which is near an active business district at Journal Square, Lincoln Park and other amenities.
“We are excited to get to work with SCALE once again as they have proven themselves to be a true leader in the market with a clear vision for how to tackle seemingly complex projects,” said Effy Namdar, chief investment officer at Namdar Group.
The news comes a year and a half after Namdar touted the completion of MRK, a 15-story multifamily project at 97 Newkirk St. The Great Neck, New York-based developer has sought to expand its footprint in Journal Square, as have a host of other developers seeking to tap into the neighborhood’s historic infrastructure and the Journal Square PATH station.
“This deal is our second venture with SCALE, who has become one of our most trusted lenders, and we look forward to building on this relationship in the future as we undertake innovative developments that continue to strengthen Jersey City and the greater New York market,” said Andrew Namdar, the firm’s chief financial officer.