Hudson Heights at 115-129 37th St. in Union City — Courtesy: Progress Capital
By Joshua Burd
The developer of a new 96-unit apartment building in Union City has landed more than $23 million in permanent financing, in a transaction arranged by Progress Capital.
The commercial mortgage brokerage firm announced Friday that it negotiated a $23.35 million loan to refinance Hudson Heights, a 10-story property at 115-129 37th St. Progress Capital Partner Brad Domenico sourced the Fannie Mae agency loan, which was underwritten through Red Capital, noting that the deal closed after only one month of stabilized performance for the apartment building.
The nonrecourse financing comes with a rate under 4 percent that is fixed for 10 years, the firm said, with three years of interest only.
“You’re ultimately closer to Times Square from Union City than you are from Brooklyn,” Domenico said. “It’s an emerging market — since it’s very close to the city and is still more affordable than Hoboken and Jersey City.”
Domenico noted that banks typically require a sufficient amount of time to demonstrate profitability before considering a permanent loan, but Progress Capital managed to secure several options before its client ultimately picked the Fannie Mae loan.