SHIFT Capital, the Hanini Group and CoInvestment Partners recently purchased a portfolio in Newark that includes two office buildings at 707 Broad St. and 153 Halsey St. and a 901-space parking garage at 261 University Place. — Courtesy: JLL
By Joshua Burd
A joint venture has landed a nearly $114 million loan to purchase and reposition two office buildings and a parking garage in downtown Newark, according to a debt advisory team.
In a news release, brokers with JLL and Progress Capital said ACORE Capital LP is providing the three-year, floating-rate financing to SHIFT Capital, the Hanini Group and CoInvestment Partners in connection with the recently announced transaction. Loan proceeds will support a portfolio that includes more than 816,000 square feet of office space at 707 Broad St. and 153 Halsey St., where the buyers are planning a $70 million renovation, along with 901 parking spaces at 261 University Place.
JLL senior managing directors Michael Klein and Jon Mikula and Director Matthew Pizzolato worked alongside Progress Capital Partner Brad Domenico in the deal, sourcing the $113.5 million loan on behalf of the borrowers.
“The sponsor developed a thoughtful business plan designed to create tremendous long-term value for Newark and build on its rich history of innovation and civic engagement,” Pizzolato said. “ACORE Capital recognized the value created by the team and stepped up to offer a high leverage, structured debt solution that will allow the sponsor to execute their business plan.”
JLL noted that the loan will help fund future capital expenditures and leasing costs for the office buildings, which were originally built in the 1920s. The properties are leased on a long-term basis to the State of New Jersey, which houses more than 3,500 employees across 35 departments on site, with a location in the heart of the city’s central business district.