The Annex at Kearny Point, a planned 90,000-square-foot creative office project — Courtesy: Hugo Neu Group
By Joshua Burd
Hugo Neu Group has secured more than $16 million in financing to restore and repurpose another building at its flagship Kearny Point campus in Kearny, where it’s adding some 90,000 square feet to the existing stock of creative office space.
The developer on Tuesday announced the financing for what’s known as The Annex, which will represent the third structure to be transformed under its multiphase, $1 billion redevelopment of the historic former shipbuilding complex. The package includes a $4 million loan from Capital One’s Community Renewal Fund and a $10.5 million allocation from New Jersey Community Capital, both under the New Market Tax Credit program.
New Jersey Community Capital also provided Hugo Neu with a $2.5 million term loan.
“We’re incredibly excited by the opportunity to bring a flex office environment like The Annex to Kearny Point’s already thriving community of innovative and forward-thinking companies,” said Michael Meyer, director of development for Hugo Neu. “Lenders like Capital One and New Jersey Community Capital not only make projects like this possible, but remain critical to the continued realization of our vision at Kearny Point: to provide opportunities to businesses of all shapes and sizes, and to become a model for environmentally and socially conscious redevelopment.”
Construction of The Annex is slated for completion in April. According to Hugo Neu, plans call for two floors of modern creative office space, amenities and break-out areas in a naturally lit crane-way. The structure will also adjoin Building 78, the first building to be renovated at the campus, which is home to more than 200 businesses.
“Kearny Point demonstrates the importance of funding initiatives for projects that support social, economic and environmental justice,” said Mitch Hart, vice president, commercial banking at Capital One. “For entrepreneurs, start-ups, and innovative small businesses primed for growth, an investment in Kearny Point is an investment in the business community of Hudson County and the region as a whole. We were happy to be involved.”
The Annex’s office space caters to small businesses, startup and entrepreneurial companies, including many minority- or women-owned businesses and nonprofit organizations, according to a news release. The space also targets businesses working to develop and commercialize technologies and services advancing energy conservation, alternative energy, resiliency, storm water management, preservation and restoration of natural resources.
Hugo Neu has also created a Qualified Opportunity Zone (QOZ) Fund, HNG Opportunity Fund LLC, and invested a total of over $10 million into the fund for capital expenses associated with The Annex.
“It’s impossible not to be inspired by Kearny Point, its success stories, and its plans for the future,” said Wayne Meyer, president at New Jersey Community Capital. “NMTCs are important building blocks for projects like Kearny Point and allow us to effect meaningful change. Hugo Neu’s commitment to sustainable development, local economic growth, and equitable and inclusive work environments is unparalleled. We are privileged to celebrate this milestone alongside Hugo Neu and look forward to Kearny Point’s continued successes.”
