NewPoint Provides $153.6 Million Freddie Mac Refinance for Jersey City High-Rise
Jersey City, NJ (March 21, 2023) – NewPoint Real Estate Capital (“NewPoint”) has provided a $153.6 million Freddie Mac Conventional loan to refinance The One for BLDG Management, a private real estate investment and management company that developed the property in 2015. The One is a 35-story, 451-unit Class A multifamily high-rise located at 110 First Street in Jersey City’s Waterfront submarket. NewPoint worked with Carol Shelby and Eric Schleif of Meridian Capital Group, who represented the borrower on the transaction.
“Despite having to navigate complexities around a PILOT tax abatement program, this transaction proceeded smoothly along our targeted timeline for taking out a maturing loan,” said Ryan Koehler, Vice President, Originations at NewPoint. “We rate locked two weeks after application and closed on the same day as commitment, a result of fantastic coordination between NewPoint, Freddie Mac and the Meridian team.”
The seven-year loan features a 35-year amortization schedule, which Freddie Mac provided given the 65% LTV, affordability elements and strength of the sponsorship. The One has a 10-year PILOT tax abatement program with 10 rent-restricted units.
“Having previously negotiated financing for this well-performing asset on behalf of BLDG Management, we were well-versed in its history and are pleased to have partnered with NewPoint and Freddie Mac to deliver an attractive solution that supports BLDG Management’s business plan,” said Carol Shelby, Managing Director at Meridian. “We also commend NewPoint’s team for securing some of the best terms the market offers for this long-time client.”
The One features studio, one-, two- and three-bedroom units and was more than 98% occupied at closing. Units feature stacked washer/dryers, stainless steel appliances and quartz countertops. Amenities include a roof-top deck with a pool, attached parking, a concierge, fitness center, children’s playroom, theater room, golf simulator, game room, barbecue area, outdoor dog park and coffee/tea service in the lobby. The property’s first floor features five fully leased retail spaces, one of which is a private K-8 school.
The Waterfront submarket in Jersey City has seen a tremendous rebound in recent quarters supported by a return to the office in Manhattan. The highly amenitized area has proven desirable to renters looking for value and a short commute. Asking rents increased by 7.8% in 2022, a growth rate among the highest for submarkets in the New York City metro area, and vacancy now stands at just 3.4%.
About NewPoint Real Estate Capital
NewPoint Real Estate Capital LLC (NewPoint) is a prominent commercial real estate finance company delivering lending solutions to investors of multifamily, affordable housing, seniors housing, healthcare, and manufactured housing properties nationwide. NewPoint leverages technology, data, capital, and the expertise of its industry-leading team to provide loan origination, servicing, execution, and a suite of Agency and curated proprietary products to meet the evolving needs of borrowers. In addition to being a Fannie Mae DUS®, Freddie Mac Optigo®, and FHA/HUD MAP and LEAN Lender, NewPoint also offers proprietary bridge and affordable housing financing.
NewPoint Real Estate Capital
NewPoint Real Estate Capital