Scale Lending Provides $243M Loan for Two Jersey City Apartment Buildings
Namdar Group will construct a pair of mixed-use properties in Journal Square that include office and retail
By Brian Pascus January 11, 2024 11:53 am
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SCALE Lending is doubling down on an origination model in Jersey City.
Namdar Group has secured two loans totaling $243 million for a pair of mixed-use, residential apartment buildings in Jersey City, N.J.: a $160 million construction loan will be used to build a 27-story apartment building that includes retail and office space, plus an $80 million bridge loan that will be used to retire construction debt on another mixed-use, 27-story property in the same neighborhood.
Scale Lending, the debt financing arm of Slate Property Group, provided the financing on both deals. The loan marks yet another transaction between Namdar Group and Scale Lending. The two firms have finalized a total of $403 million in debt across three loans in the last six months for a trio of projects in the Journal Square neighborhood.
Both loans were arranged by Drew Fletcher and Bryan Grover of Greystone Capital Advisors. In a statement, Fletcher emphasized that the deal took “tremendous creativity [and] flexible structuring.”
“We are thrilled to close another market-leading transaction with our long-standing client, the Namdar Group, and our trusted lending partners at Scale,” said Fletcher.
Martin Nussbaum, co-founder and principal at Slate Property Group, said in a statement that his firm was brought back into the same neighborhood by Namdar Group’s “tried-and-true track record” and the strong demand in the submarket for more multifamily units.
“The market’s appetite for multifamily in Journal Square far exceeds available supply and is the single most important demand driver that continues to attract us back to the neighborhood,” said Nussbaum.
The larger construction loan finances a project at 626 Newark Avenue in Journal Square. The building will rise 27 stories and house 576 rental units, while also featuring 9,915 square feet of retail and 17,747 square feet of office space. The project is expected to deliver units to the market in 2026.
The smaller bridge loan retires $73 million in construction financing and will fund the lease-up of 26 Van Reipen Avenue in Journal Square. Standing 27 stories and featuring 235 rental units, 26 Van Reipen was completed in late 2023 and features 7,562 square feet of retail and 7,546 square feet of office space.
“Scale’s winning recipe is simple: work with trusted sponsors in desirable locations on high-quality multifamily properties,” said Daniel Ridloff, managing director of Scale in a statement. “With many traditional lenders parked on the sidelines, we’ve seized the opportunity to utilize our strong relationships to close deals.”
Brian Pascus can be reached at bpascus@commercialobserver.com
