A rendering of a new 99-unit residential and retail project on Summit Avenue in Jersey City — Courtesy: Progress Capital Advisors
By Joshua Burd
Progress Capital Advisors has secured more than $26 million in financing for the construction of a new nine-story, mixed-use building in the McGinley Square section of Jersey City.
The firm on Tuesday said it arranged the construction-to-permanent loan through Sterling National Bank for the two parcels on Summit Avenue. The financing will support 99 luxury apartments and 2,240 square feet of retail space to be built on two parcels, including one vacant lot and one site that is currently home to the former Fairmount Hospital.
The parcels encompass two corner properties, one at the intersection of Summit and Fairmount avenues and the other adjoining at the intersection of Clifton Place and Fairmount Avenue.
“Jersey City has seen a complete transformation over the years in residential and commercial development,” said Progress Capital’s Brad Domenico, who negotiated the loan. “This new construction represents the continued fervor at which the redevelopment continues — this being one of the first major new projects in the McGinley Square section of Jersey City just south of both downtown and Journal Square — where we have seen the bulk of repositioning thus far.”
Purchased in 2015, the site will be home to a high-end rental property with a 24-hour concierge, fitness center, residential lounge with conference room, rooftop terrace and garden and other amenities. Plans also call for a 75-space underground parking garage.
Domenico negotiated the amount and terms of the loan with Michael Savarese of Sterling National Bank, according to a news release. The terms include an 18-month interest-only period floating over LIBOR, while the borrower will have two optional 12-month extensions on the construction phase.
Upon stabilization, the borrower has the option to convert to a permanent mortgage, the news release said. The loan represents a 65 percent loan to project cost.