Citigroup, BMO Lead $280M Acquisition Loan on Jersey City Office Buy
By Andrew Coen April 24, 2023 5:38 pm
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Real estate investment group 601W Companies has sealed $280 million of acquisition financing for its purchase of three Jersey City office buildings that fetched a surprise profit, Commercial Observer has learned.
Citigroup (C) and Bank of Montreal (BMO) supplied $225 million in senior financing — which will eventually be securitized — while Meritz Securities provided $55 million of mezzanine debt on Harborside Financial Center Plaza, which 601W acquired in early April for $420 million from Veris Residential.
The developer initially acquired the properties for $293.7 million in 1996 from AT&T when it was known as Mack-Cali Realty Corporation, Commercial Property Executive previously reported.
The Harborside transaction went against the grain, with headwinds facing an office sector in which a number of properties have sold at big losses due to increased hybrid working trends.
The office buildings at Harborside Financial Center Plaza at 150, 200 and 210 Hudson Street span 1.9 million square feet. The offices are about 60 percent leased, and the retail portion of the buildings are around 25 percent leased.
Officials at BMO, Meritz and 601W Companies did not immediately return requests for comment. Citi declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com
