HOBOKEN, NJ-The owner of a 24-property portfolio, all in this Hudson River waterfront city, has picked up a $61-million refinancing package for those properties. The complicated deal was arranged by the Jersey City office of CharterMac; the borrower, who was not unidentified, was described by a spokesperson of the firm as "an investor in the Hoboken area for 20 years."
The largest of the buildings is 1200 Washington St., and most of the properties were built in the early 1900s and renovated in the 1990s and early 2000s. The portfolio totals 450 residential units, with the individual buildings ranging from six to 64 units. Eight of the buildings have commercial spaces that are 100% leased, mostly retail stores, delis, restaurants and similar uses.
As far as the deal itself, it was put together utilizing Freddie Mac's Conventional Early Rate Lock program, according to Gary Cohen, vice president of CharterMac's Jersey City office. The $61-million deal is being financed as 24 separate loans, "each loan being cross-collateralized and cross-defaulted," he says. "For certain compliance regulations, the loans will be processed individually, ranging in size from about $700,000 to $20 million. The refinancing proceeds will be used for future acquisitions and to pay off debt that had higher rates."
Directly across from Manhattan, Hoboken "has seen demand for rental housing stock strong, given the close proximity to Midtown, which by PATH train from Hoboken is just an eight-minute commute," Cohen says. "It provides an affordable alternative for the overflow of renters from the Manhattan market, where rents are almost double that of Hoboken. Apartment vacancy rates have been less than 5% over the past two years, and the 24 properties in this particular portfolio are currently experiencing 100% occupancy.
"Although Hoboken is only one square mile, we continue to monitor the investment opportunity in the area because of the proximity to Manhattan and the low vacancy rates," Cohen says. "Investors continue to be drawn to the Northern New Jersey market in general because of its location and the large population of rental households."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.