Toll Brothers JV Sells Jersey City Luxury Tower
This marks the largest multifamily transaction in New Jersey so far this year.
Rockpoint Group has purchased The Morgan at Provost Square, a 417-unit luxury apartment tower in Jersey City, N.J. A joint venture that includes Toll Brothers Apartment Living sold the asset in the largest multifamily transaction in New Jersey so far this year.
JLL Capital Markets represented the seller and advised Rockpoint on the acquisition financing. Rockhill Management—Rockpoint’s property services arm—will manage the high-rise and implement upgrades aimed at enhancing resident satisfaction. The tower was more than 97 percent occupied at the time of closing.
Toll Brothers developed The Morgan in partnership with AECOM Capital. Construction financing included $25 million provided by Comerica Bank, $47.5 million provided by Wells Fargo Bank and $47.5 million from PNC Bank, according to Yardi Matrix data.
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Completed in 2016, The Morgan encompasses studios, one-, two- and three-bedroom units with floorplans ranging between 481 and 1,481 square feet. The 38-story building also features around 12,700 square feet of retail space and a seven-story parking garage.
The waterfront tower’s common-area amenities include a fitness center, a rooftop swimming pool, a sky lounge, a private conference room, several coworking spaces, an outdoor courtyard with a fire pit, a media room, a pet spa, children’s playrooms, bike storage and approximately 570 parking spaces, among others. The units feature washers and dryers, stainless-steel appliances and hard-wood flooring.
The Morgan occupies nearly 1.5 acres at 160 Morgan St. in the Powerhouse Arts District. The transit-oriented property is near Grove Street PATH Station, NY Waterway Ferry, Hudson-Bergen Light Rail, Interstate 78 and the Holland Tunnel, providing easy access across the New York City metropolitan area.
JLL Senior Managing Directors Jose Cruz, Michael Oliver and Steve Simonelli, Directors Elizabeth DeVesty and Austin Pierce and Senior Director Ryan Robertson negotiated on behalf of the seller.
A strategic exit from multifamily?
The Morgan at Provost Square represents Phase I of the larger Provost Square project being developed by Toll Brothers in downtown Jersey City. AECOM Tishman served as general contractor and SLCE Architects as main architect. Just last year, the developer completed 151 Bay St., the third and final building at Provost Square.
The sale of The Morgan comes amid a major shift for Toll Brothers. Last month, Kennedy Wilson acquired the firm’s multifamily platform, gaining interest in residential and student housing assets valued at more than $2 billion and a robust development pipeline. Back then, Toll Brothers announced it would sell all remaining assets in order to exit the multifamily development business entirely.
