IREC Nets $150M in Financing for Hoboken Project

Hoboken Terminal. Photo by Jesse Mills via Unsplash

Intercontinental Real Estate Corp. has landed $150 million in financing for the construction take-out of 7 Seventy House, a market-rate, mixed-use development in downtown Hoboken, N.J.

Arranged by Wells Fargo’s Multifamily Capital team, the five-year, fixed-rate term with three years of yield maintenance provides the sponsor prepayment flexibility. A portion of the housing at 7 Seventy House will be affordable, with 10 percent of the residences set aside for residents making less than 80 percent of Area Median Income.

Situated at 770 Jackson Street, 7 Seventy House was built in 2019. The property features 382 units in a mix of apartment sizes ranging from studios to three-bedrooms and from 415 to 1,625 square feet. Apartments feature walk-in closets and high-speed Internet access, while the property offers a roof terrace.

“High mark”

“Uncertainty in the capital markets was certainly a challenge that arose during the financing,” Andrew Cohen, director in Wells Fargo’s CRE Multifamily Capital Group, told Multi-Housing News.

“Within one month of locking the index, the 5-year treasury hit its high mark, which coincided with the collapse of Silicon Valley Bank, and several other institutions in the ensuing days. As a result of Freddie Mac’s spread hold and the borrower’s decision to index lock early in the process, Wells Fargo was able to navigate the turmoil and deliver on proceeds issued in the application.”

The Waterfront Walkway Pier C Park, and Frank Sinatra Park, all located along the Hudson River opposite New York, are located nearby, as is Church Square Park and downtown Hoboken’s many dining options. Manhattan is easily accessible, with direct access offered via above-ground or subterranean rail, ferries or the Holland Tunnel.

In addition to Cohen, the Multifamily Capital team’s Shane Hogan arranged the financing on behalf of Wells Fargo. Robert Deignan, Dean Jewett and Siobhan Doran of Wells Fargo’s Real Estate Banking originated the construction loan on behalf of Intercontinental of Boston, Mass. Several weeks ago, Hampshire Cos. landed $62 million in construction financing for a Hackensack, N.J. development that is part of the city’s redevelopment plan.