A developer with a huge stake in the Journal Square neighborhood has just secured financing to complete the buildout of their latest 27-story project.
JLL Capital Markets announced that they have secured $152 million in construction financing for the development of 35 Cottage Street, a 588-unit luxury apartment building in Jersey City. The development, already under construction by Long Island-based Namdar Group, is set to include a Chabad Synagogue, a pre-school, and the first dedicated party hall in Journal Square.
JLL represented the borrower, Namdar Group, to secure the senior financing through Centennial Bank and the mezzanine financing through a private lender.
“Namdar was an early mover in the JSQ marketplace and has built an institutional quality portfolio of highly efficient multi-housing units to meet the continued market demand,” said JLL Managing Director Thomas E. Didio when announcing the deal. “JLL is excited to partner the CCFG and Namdar teams to bring to life the next building in their portfolio.”
Jersey Digs broke the news on the project way back in 2018. A former synagogue at the site was demolished for the project, which is part of a larger effort from Namdar that includes a new pedestrian-only stretch dubbed Homestead Plaza.
Several portions of the plaza, which is just steps from the Journal Square PATH station, have already opened in recent years. The first floor of 35 Cottage Street will contain retail space set to face the Homestead Plaza walkway.
Namdar Group’s infatuation with Jersey City stems from a low vacancy rate of 2.3% despite rising rents and an increase in supply. The company also believes that Jersey City’s multi-housing market has thrived thanks to the migration of office tenants from Manhattan, driving up demand for housing options.
“We are excited to have the opportunity to work again with the Centennial team on the development front in Jersey City,” added Andrew Namdar of Namdar Group. He noted that the city’s demographics are particularly appealing, with nearly half of its households earning over $100,000 annually and a significant portion of the population being young professionals between the ages of 25 and 44.
