JV Lands Loan for NJ Adaptive Reuse Project

The property is located at 303 Washington Street in Newark, N.J. Image courtesy of Northwind Group

A joint venture between Summit Assets and Winchester Equities has secured a $22 million first mortgage for an office-to-residential conversion in downtown Newark, N.J.

The project, 303 Washington Street, will transform a five-story office building into a modern, 10-story, 92-unit rental apartment community. Upon completion, the development will offer a blend of studios and one- and two-bedroom apartments. The building will also feature a 360-degree rooftop deck, among other amenities.

Real estate private equity firm and debt fund manager Northwind Group provided the first mortgage loan to the joint venture. The financing for the transaction was arranged by Zach Mordechai and Ben Frances of MSCO Capital Advisors. Northwind Group was represented by John Vavas of Polsinelli Law Firm.

Adaptive reuse

The building formerly served as offices for several local entities, including the United Way of Essex and West Hudson. It was acquired $6.5 million in 2018.

Befitting its former status as an office building, 303 Washington Street is located just blocks from Newark Penn Station, offering quick commutes into Midtown Manhattan, as well as more long-distance travel via New Jersey Transit and Amtrak. The station is the seventh-busiest rail station in the U.S. and serves as the intercity bus terminal for Newark.

Rutgers University’s Newark campus is situated some 10 blocks north of the property. Various retailers, restaurants and businesses are located nearby, as are several parks, including Frederick Douglass Field, Military Park, Veterans Memorial Park and Justice William J. Brennan, Jr. Park.

Northern New Jersey has been an active market in recent years. Several months ago, IREK landed $150 million in financing for a market-rate project in Hoboken.