The second and third phases of the 829-unit Hudson House complex at 315 15th St. in Jersey City are slated for completion this summer. — Rendering courtesy: Strategic Value Partners LLC
By Joshua Burd
A high-profile investment group has acquired a three-phase, 829-unit luxury apartment complex in Jersey City that’s nearing full completion after more than five years of construction.
The buyers, which paid an undisclosed price in the deal at 315 15th St., include funds managed by affiliates of Strategic Value Partners LLC, One Investment Management, RXR and Columbia Property Trust. They said the complex transaction included a refinancing of the existing senior mortgage with a new loan from affiliates of Apollo Global Management, which will help fund construction completion, lease-up and additional enhancements at what’s known as Hudson House in the city’s fast-growing SoHo West neighborhood.
JLL advised the seller, Manhattan Building Co., on certain aspects of the transaction, according to a news release. Cushman & Wakefield advised certain participants on the acquisition and recapitalization.
“Hudson House is a transformative project for the Jersey City residential market, and we are pleased to be partnering with OneIM, RXR and CXP,” said Mike Ungari, SVP’s head of real estate. “This investment highlights our shared ability to navigate complex capital structures and vision to drive long-term value creation through collaboration in institutional-quality real estate.”
In announcing the deal, the buyers noted that Hudson House’s 350-unit first phase is completed and leased. The remaining two phases of the development are slated to be delivered this summer with move-ins beginning shortly thereafter.
Each is a distinct component, the firms said, noting that the buildings feature large unit layouts averaging 1,136 square feet and high-end amenities such as a resort-style pool deck, a fitness center with three saunas and a yoga studio, among others. The properties also include 48,000 square feet of ground-floor retail space, while renters are just west of the Holland Tunnel, just south of Hoboken and minutes from the New Jersey Turnpike.
“This project is a high-quality asset in a uniquely desirable location with continued phases underway,” said Russ Young, executive vice president for investments at RXR. “This closing continues RXR’s robust presence in structured transactions, now comprising over $2 billion in capital placement over the past two years.”
Davis Polk & Wardwell LLP, Gibson Dunn & Crutcher LLP, Milbank LLP and Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel on the transaction and refinancing.
“We are excited to pair our team’s multifamily experience and vertically integrated platform with our partners to navigate, close and execute the development of Hudson House,” Columbia Property Trust CEO Adam Frazier said.
