Meridian Brokers Financing for Mixed-Use Garage Property in N.J.
Meridian Capital Group secured a $30.8 million loan to refinance a mixed-use property in Jersey City on behalf of a subsidiary of Ironstate Holdings, Mortgage Observer has learned.
The seven-story development is a novel combination of a parking garage with residential and retail space, making it an unconventional deal.
New York Community Bank provided the five-year loan to borrower Columbus Parking, LLC, a source with knowledge of the deal confirmed. The loan carries a fixed interest rate of 3.10 percent and a 30-year amortization schedule.
Meridian Senior Vice President Russ Drebin and Managing Director David Cohen negotiated the transaction out of the company’s Iselin, N.J., office. Meridian declined to name the lender.
“It was a pleasure to work with the professional staff at Ironstate Holdings,” Mr. Cohen said. “Working together, we were able to structure financing at well-below market rate with the flexibility the sponsor required to position this property in the future.”
Columbus Garage, located at 66 Christopher Columbus Drive, contains 850 parking spots, eight residential units, and 29,700 square feet of ground-floor retail space currently leased to Base Gym.
The top floor of the garage houses a large swimming pool and tennis court. The structure is attached to 50 Columbus Drive, a 400-unit luxury multifamily property also owned by the sponsor.
“It was a complicated deal, due to the multifaceted aspect of the property’s use and the fact that banks have challenges underwriting gyms as long-term tenants,” the person familiar told MO.
An Ironstate representative did not return requests for comment in time for publication.