General Kearny Apartments at 41-109 Belgrove Drive in Kearny — Courtesy: Progress Capital
By Joshua Burd
The buyer of a six-building, 171-unit apartment complex in Kearny has secured $27 million in financing, in a newly announced transaction by Progress Capital.
The borrower, Robert Tagliareni, purchased the General Kearny Apartments from a seller that had owned the asset for 17 years, according to a news release. It completed the deal at 41-109 Belgrove Drive with the help of the acquisition loan from ConnectOne Bank.
Progress Capital’s Brad Domenico sourced the financing on Tagliareni’s behalf, working with selling brokers Niko Nicolaou and David Oropeza of Gebroe-Hammer Associates.
“Each deal has their own set of challenges,” Domenico said. “When working with a difficult seller, it is important to have a strong, knowledgeable team to aid in working through such challenges so that our client’s needs are met. Niko is a rock star so I knew having him involved would help immensely.”
Michael Strauss of ConnectOne Bank spearheaded the loan origination.
“Michael was great to work with,” Domenico said. “He was very accommodating and provided what we needed to allow time and an interest-only period for my client to implement his plan for the property. ConnectOne is a class act and a pleasure to work with.”
In a news release, Progress noted that Tagliareni has more than 40 years of experience investing in commercial real estate properties throughout New Jersey. In Kearny, the firm said he saw a value-add opportunity and plans to invest $1 million in initial upgrades, including roof improvements, technology to monitor the heating systems, updating all common and lobby areas and installing LED lighting.
The advisory firm added that the seller had invested extensively in exterior building renovations and landscaping since purchasing the property. Additional features include on-site laundry facilities, parking and storage, which generate additional cash flow.
Meantime, residents have easy access to nearby retailers and mass transit.
“Sometimes it takes a little more muscle to make a deal happen but it’s nothing we can’t handle,” Domenico said. “That’s why having strong lending relationships in the industry are important. We’re really excited to see Bob’s vision of the property come to life. It’s one of the pleasures of the job to see neighborhoods transform.”