By Joshua Burd
A development group has paid $17 million to acquire a former manufacturing site in Jersey City, where it’s now planning a mixed-use residential and retail project.
Brokers and attorneys involved in the deal this week announced the sale of 400 Claremont Ave., a 2.73-acre site on the city’s west side. Chemical maker Elementis Specialties Inc. sold the property to 400 Claremont Urban Renewal LLC, with brokers noting that the site housed a pigment and colorant plant for more than 70 years.
Attorneys with Cole Schotz P.C. and commercial mortgage banker Progress Capital Advisors announced the deal this week, although additional details about the project were not immediately available. Kathy Anderson, managing partner with Progress Capital, arranged $11.875 million in acquisition and predevelopment financing, while also arranging for a joint venture equity partner.
“The location of this site at the West Side Avenue station of the light rail is ideal for our planned redevelopment into a residential rental building with parking and retail,” said Art Johnson, managing member of 400 Claremont Urban Renewal. “Our proposed plans will focus on the key elements driving rentals today which are a safe, trendy building with an overabundance of amenities. Our goal is to create a community.”
The development group in 2015 completed 25 Senate Place, a 265-unit property in the city’s fast-growing Journal Square section.
According to Progress Capital, the financing for the latest project will allow the partnership to purchase the property, demolish the existing building and remediate the site. It also provides funds for predevelopment expenses such as architectural, engineering and carry costs.
Anderson will continue to represent the owners as they source construction financing options for the project, Progress said.
“Having worked with Art and his team for the past 15 years, I look forward to another exciting project at 400 Claremont,” Anderson said.
The Cole Schotz team advising the buyer was led by member Leo Leyva and consisted of member Robert DiPisa and associate Jonathan Goodelman, who advised on the acquisition. The team also included member Rab Nalavala and associate Eric Reisman, who advised on the loan, along with member Jennifer Horowitz and associate Samantha Epstein, who provided corporate guidance. Members Richard Ericsson and Marcie Horowitz and associate Elizabeth Bogle assisted with the environmental work.
Gibbons P.C. represented the lender in the transaction.
The site is just a few blocks north of what will be known as University Place, a redevelopment area owned by New Jersey City University, where developers are slated to build more than 1,000 market-rate units. The first of several residential and retail projects opened its doors earlier this week at RIVET, a joint venture of The Hampshire Cos., Claremont Cos. and Circle Squared Alternative Investments.