Namdar Secures $220M for NJ Community
This is the latest in a series of loans Namdar obtained for its Journal Square properties, originated by the same lender.
Namdar Group has obtained a $220 million bridge loan for the refinancing of 626 Newark Ave., a 576-unit, Class A community in Jersey City, N.J. TYKO issued the debt in a deal arranged by Walker & Dunlop.
This note retires a $160 million construction loan issued by SCALE Lending as part of a larger financing package, which also included $83 million in funding for 26 Van Reipen, a 235-unit property within the same city.
The newly secured debt will facilitate the lease-up process. Namdar broke ground on 626 Newark in January last year.
Rising 27 stories, 626 Newark comprises studio and one- to three-bedroom floorplans. The tower also features 9,915 square feet of retail and 17,747 square feet of office space.
The property is within Jersey City’s Journal Square neighborhood, a 211-acre site undergoing a redevelopment effort that aims to reposition the area as the city’s central business district.
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Walker & Dunlop Senior Managing Directors Keith Kurland, Aaron Appel, Dustin Stolly, Jonathan Schwartz and Adam Schwartz, together with Managing Directors Jordan Casella and Sean Reimer, Associate Director Christopher de Raet and Edward Leboyer, led the debt negotiations on behalf of Namdar.
New Jersey, an emerging alternative to New York City
As New Jersey remains a more affordable option compared to New York City, developers aim to seize the opportunity. The market’s inventory grew by 3 percent year-over-year through August, according to the latest Yardi Matrix report. Meanwhile, the occupancy rate stood at 97.0 percent in July, experiencing a slight 20-basis-point decline compared to the same period of last year.
Namdar Group is bullish on Jersey City, particularly Journal Square. Just last month, it landed a $358 million debt package—once again from TYKO—to facilitate the construction of 29 Van Reipen Ave., a 696-unit project, and the development of a 432-unit property at 612 Pavonia Ave., Commercial Observer reported.
But Namdar isn’t the sole developer keen on the neighborhood. Nasser Freres secured a $245 million construction loan late last year for its 622-unit tower. TYKO issued the funds in another deal brokered by a Walker & Dunlop team.
