BMO Provides $154M Senior Loan on SJP, David Werner’s & Onyx Partners’ Hoboken Office Buy

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Bank of Montreal (BMO) is the senior lender behind SJP Properties, David Werner Real Estate Investments and Onyx Partners’ financing package for the joint venture’s purchase of Waterfront Corporate Center I in Hoboken, N.J., Commercial Observer has learned.

BMO provided a $153.8 million first mortgage in the deal, while 3650 REIT supplied $30 million of preferred equity, sealing the JV’s acquisition of the 14-story office and retail asset from real estate investment trust Veris Residential (formerly Mack-Cali Realty Corporation). 

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Meridian Capital Group arranged the financing, with a team led by Drew Anderman and Eddie Haber.

Jeremy Rieder, president and CEO of Onyx Partners, is a co-general partner in the transaction and the property’s asset manager.

SJP originally developed the property in 2002 as a three-building, 1.5 million-square-foot mega-complex along the Hudson River. The deal brings the asset under SJP’s ownership once again.

No purchase price was disclosed, but sources close to the deal said the trophy asset traded for roughly $210 million when the acquisition closed on Jan. 21, as first reported by CO. Veris Residential purchased Waterfront Corporate Center I in 2016 for $235 million from Equity Commonwealth.

“We are excited to have facilitated this highly accretive financing package for a best-in-class group of sponsors and are appreciative of both BMO and 3650 REIT who were incredible lending partners and worked expeditiously to close this time-sensitive acquisition,” Meridian’s Anderman said in a statement. 

Located at 111 River Street in Hoboken, the office complex spans roughly 560,000 square feet. The property features 40,000-square-foot floor plates, on-site covered parking, retail space and a fitness center.

Officials for Bank of Montreal not immediately return a request for comment. SJP declined to comment. 

Andrew Coen can be reached at acoen@commercialobserver.com.