The Hudson Tea Parking Garage at 1450 Bloomfield St. in Hoboken — Courtesy: Northmarq
By Joshua Burd
The buyer of a 1,250-space parking structure in uptown Hoboken has obtained nearly $27 million in financing for the deal, according to a debt placement team with Northmarq.
An undisclosed life insurance company provided the $26.4 million loan to the borrower, Boston-based LAZ Parking Realty Investors, for its purchase of the Hudson Tea Parking Garage at 1450 Bloomfield St. Northmarq’s Daniel Karp secured the permanent, fixed-rate financing on the buyer’s behalf, noting that the transaction included a 10-year term with five years of interest only payments followed by a 30-year amortization schedule.
“Hoboken is a tight market for parking as there are fewer than 10,000 street parking spaces in the city and only five municipal parking garages, so a well-operated parking garage is in high demand,” said Karp, a vice president based in Northmarq’s Boston regional office.
Built in 2004 by Tolls Brothers, the 389,984-square-foot garage is near Hoboken’s 14th Street ferry terminal and surrounded by thousands of condominiums and apartments, as well as strong commercial corridors, according to a news release. The parking structure serves a wide range of users including residents, daily parkers, monthly passholders and commuters, while Avis Car Rental operates an office within the garage.
Northmarq, which has worked on several deals with LAZ Parking Realty Investors, said the privately held firm was founded in 2007 by a team of real estate and parking professionals, acquiring parking assets on behalf of itself and its investment partners. The deals have included everything from garages and airport parking facilities to surface lots and municipal concessions such as meters and parking facilities, totaling more than $2 billion.
“We have an outstanding working relationship with LPRI,” Karp said. “We are appreciative of the trust that Ted Silverman, senior vice president of LPRI, and the company placed in us to handle this assignment. We are pleased to execute the financing of the asset on favorable terms that worked well for both the borrow and the lender.”