3 ACRES at 400 Claremont Ave. in Jersey City — Courtesy: Progress Capital
By Joshua Burd
The developer of more than 600 new apartments in Jersey City’s West Side neighborhood has refinanced the property for $160 million, in a transaction arranged by Progress Capital.
According to the debt placement team, 400 Claremont LLC was seeking a permanent loan to replace construction financing for its 629-unit project known as 3 ACRES, which sits at 400 Claremont Ave. Progress Capital Founding Partner Kathy Anderson represented the borrower in securing the deal, which came with a 90-day rate lock thanks to the property’s strong leasing velocity since hitting the market last December.
“We made a big bet on the West Side, believing that the positive transformation that has taken place here in recent years paved the way for a top-of-market rental building with an extraordinary amount of indoor and outdoor amenities and high-level services,” said Art Johnson, principal of 400 Claremont LLC.
In announcing the deal, Progress noted that its search for permanent financing began several months earlier than planned due to the sudden turmoil of war in Ukraine, rising inflation and rising interest rates. That created a challenge given that 3 ACRES had only recently launched leasing, but the property’s absorption of roughly 100 units per month allowed the firm to secure a deal that would permit a forward rate lock prior to stabilization.