Mortgage Observer

In Development

-1

Doug Stern had a real estate dream. In his early 40s, after years in private equity and managing his family’s commercial real estate properties, he longed for a career change and a development project on his own. His mission became clear in Bayonne, N.J., where, he said, he fell in love with the former headquarters of the intimate apparel company Maidenform. Located two blocks from the Hudson-Bergen light rail 22nd Street station, the four-story, 94,000-square-foot brick complex—over 100 years old—was familiar to generations of Bayonne residents, many of whom had worked there until the company moved to Iselin, N.J. in 2007. Mr. Stern saw the potential for the historic, vacant property into a Brooklyn-style 99-unit residential building.

Although he could buy the building, he figured that he needed upward of $20 million in construction financing to redevelop it. Read More

Mortgage Beat

Funding for Nazarian Hotel Development Revealed

444 Park Avenue South.

L.A. nightclub and hotel guru Sam Nazarian has set his sights on the Midtown South submarket. As the Wall Street Journal reported recently, Mr. Nazarian will develop a boutique hotel at 444 Park Avenue South, along with his partner, New York-based Moin Development Corp.

Now The Mortgage Observer has learned that the financing for the project was arranged by HKS Capital Partners, in a mix of two types of financings—one of which, an EB-5, was a first for the firm. Read More