HARRISON, NJ—NorthMarq Capital‘s New Jersey based regional office closed a $16.9 million 30-month construction loan for the Cookie Factory, a 104-unit multifamily property to be built on Essex Street in Harrison, NJ.
The development, which is planned for a currently vacant property, is named for the historic presence of a cookie factory on the property some years ago.
“There were a number of lenders interested in providing the financing,” Gary Cohen, senior vice president/senior director of NorthMarq, tells GlobeSt.com exclusively. “There was a lot of demand for this deal and First Niagara Bank structured a competitive loan to win the business. This will be the third or fourth building developed in the area.”
The transaction was arranged for the borrower, Bergen Street Urban Renewal LLC (a joint venture between an affiliate of the Hampshire Companies and the CrownPoint Group) by NorthMarq through its relationship with First Niagara Bank.
“You’ve got a town that’s willing to work with developers to approve multifamily development and provide PILOT agreements (payment in lieu of taxes), which are economically feasible for the developer and the town,” says Cohen. “They really want to try to redevelop this particular section of Harrison with new housing and make it a vibrant area.”
The project will consist of two, four story buildings that are connected by a common clubhouse. There will be a mix of studio, one-bedroom and two-bedroom units with an average monthly rental of approximately $1,900.