A rendering of The View at Middlesex, a planned 200-unit luxury apartment building on Lincoln Avenue in Middlesex Borough — Courtesy: Procida Funding/Forte Real Estate Development
By Joshua Burd
Procida Funding & Advisors is touting the completion of nearly $135 million in originations in 2019, including a recent loan to help redevelop a historic pier destroyed by Hurricane Sandy.
The Englewood Cliffs-based lender and advisory firm said it finished the year with a flurry of deals under its 100 Mile Fund, an open-ended, private real estate investment trust for properties within a 100-mile radius of New York City. Among the largest was the previously announced $39 million construction loan to Forte Real Estate Development, a repeat client, for a 220-unit project in Middlesex Borough known as The View at Middlesex.
Procida also said it originated a $10 million loan to finance the reconstruction of Seaside Heights’ Belle-Freeman Pier, which was destroyed by the 2012 superstorm and a subsequent fire. The firm’s client, The Mabie Group, plans to transform the now vacant lot into an entertainment destination with a 17,500-square-foot, multi-tiered restaurant and bar, a pool club for residents and a proposed concert venue.
The deal is Procida’s second project with The Mabie Group.
“Many clients have been doing business with us for years,” said William “Billy” Procida, the firm’s CEO and president. “We understand our borrowers, and they view us as loyal partners. It’s one of the keys to longevity in this industry.”
As the exclusive manager of the 100 Mile Fund, Procida provides capital for a wide range of asset classes in the eastern U.S., with a concentration in the New York metropolitan area. The firm uses both its own capital and that of its strategic partners, which includes private equity funds and institutional lenders, offering loans from $1 million to $100 million, with a focus on deals from $3 million to $50 million.
Procida in December also closed on a $6.15 million loan to 404 Church LLC, based in King of Prussia, Pennsylvania, a client who owns industrial and auto salvage facilities in Pennsylvania and South Jersey.
In the first quarter, Procida originated a revolving construction loan for the $35 million Wrenfield Townhouse project in Upper Macungie Township, which is located in Pennsylvania’s Lehigh Valley, according to a news release. The proposed townhome development will feature 98 market-rate, two- and three-story units.
“I have provided over $175 million in capital for Lou (Pektor) and his projects over the years,” Procida said. “Today, he can go to a bank for funding, but continues to come to us as we are faster, easier and reliable.”
The firm’s second-quarter activity included an $18.5 million loan to 190 Academy Urban Renewal LLC for The Nest Micro Apartments, Jersey City’s first micro-apartment building. The company also funded a $15.5 million predevelopment loan to Leopard Real Estate Partners LP for the proposed development of a $100 million, six-story, mixed-use hotel in Philadelphia’s Fishtown area, one of the city’s fastest growing neighborhoods.
The year-end activity also included 10 payoffs totaling nearly $40 million, the news release said. Deals included a payoff of a $7 million construction loan to The Mabie Group for The Shoppes at Hooper, a mixed-use 60,000-square-foot building in Toms River that is now more than 70 percent leased.
“My team is one of the very best in the business, and we have the vision and capital to get the deals done and do good by our clients and the communities we serve,” Procida said.
