A developer that already has an epic history in Jersey City’s Journal Square neighborhood is about to embark on their tallest project yet as financing has been secured to fund a 47-story tower.
Walker & Dunlop announced that it has arranged $390 million in construction financing for Park Tower, a new Class A mixed-use multifamily development at 8-16 Lott Street in Jersey City. The company’s Capital Markets Institutional Advisory arranged the loan as exclusive advisor to Namdar Group, the developer behind the project.
Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer, Jordan Casella, Christopher de Raet, and Edward Leboyer arranged the both floating-rate, interest-only senior construction loan from Affinius Capital and the floating-rate, interest-only mezzanine loan from BH3 Fund Advisors.
“Park Tower brings together market-rate and affordable housing, extended-stay accommodations and retail in one of the region’s most active transit-oriented neighborhoods,” said Appel, senior managing director of Capital Markets and co-head of Institutional Advisory at Walker & Dunlop. “This financing reflects the strength of the project, Namdar Group’s vision for Journal Square and continued institutional demand for housing in the market.”
Jersey Digs covered the project’s approval, which occurred just months ago, back in June. The high-rise development will incorporate a historic building at 629 Newark Avenue into its design while creating a new pedestrian plaza near the tower.
Drawn up by C3D Architecture, Park Tower will reach 502 feet at its tallest point. The project is set to feature 26 extended-stay hotel rooms plus 1,049 residential units, including 105 affordable spaces.
The units at the complex will skew smaller, breaking down as 764 studios, 179 one-bedrooms, 82 two-bedrooms, and 24 three-bedroom spaces. The affordable units at the complex, in contrast, will skew larger: 60 will be two-bedroom units, with 21 one-bedroom and 24 three-bedroom units.
14 of the affordable units will be set aside for those with very low income, 39 for low-income residents, and 52 units for those with moderate incomes. Eligibility for all future units will be linked to the neighborhood’s Area Median Income (AMI).
A total of 2,032 square feet of retail space will be featured on the ground floor of the project, which has no vehicle parking but space for 523 bicycles. Namdar is also negotiating with the Jersey City Redevelopment Authority to make a $100,000 contribution towards the buildout of Courthouse Park, which is slated for the current County Administration Building across the street.
“We continue to see strong demand in Journal Square from young professionals, students and middle-income residents who want a Class A living experience with convenient access to Manhattan,” said Effy Namdar, chief investment officer at Namdar Group. “Park Tower’s intentionally designed unit mix directly responds to that demand while offering premium amenities and rents that remain attractive compared with Manhattan.”
The future development on Lott Street will feature brick base walls on the first few floors of the new portion of the structure, designed to blend in with the preserved portion of the building, with a glass curtain wall exterior along the remainder of the tower.
While a groundbreaking date for the project has not been announced, a press release from Walker & Dunlop says that Park Tower is expected to be completed by May of 2029.
