A recently completed retail complex in one of Downtown Jersey City’s fastest-growing areas has secured fresh financing that will support the full lease-up of the historic property.
Lorimer Capital has announced the closing of a $63 million loan secured by the Arts & Powerhouse Building, a 118,660-square-foot mixed-use complex at 130 Bay Street. The project is owned and operated by KABR Group and Kushner Companies, which renovated and expanded a former warehouse during the development.
The property is anchored by Chelsea Piers Fitness, which has signed a 50,200-square-foot, 25-year lease. Additional tenants include Han Dynasty, One Medical, Rumble Boxing, Spear Physical Therapy, Daily Provisions, and Hudson Golf.
“The successful execution of this financing reflects continued lender appetite for high-quality mixed-use assets in fundamentally strong urban markets,” said Drew Fletcher. “KABR Group and Kushner Companies have created a truly unique adaptive reuse project that stands apart in the Jersey City market. We were pleased to advise on a financing structure that provides the flexibility needed to complete lease-up while positioning the property for long-term stabilization and permanent financing.”
Originally constructed in 1913 as an A&P warehouse, the six-story property underwent a $30 million repositioning. The building is currently approximately 65% leased, with space on the second, third, and sixth floors being actively marketed.
“We would like to thank Drew Fletcher at Greystone and Evan Bell at Lorimer for their commitment to the deal and execution of this important transaction. Our best-in-class tenant roster is a testament to what we have to offer at the A&P Building,” said Michael Goldstein, Chief Operating Officer at the KABR Group.
The Powerhouse Arts District has several major projects underway, including the upcoming home of the New Jersey Symphony. The Arts & Powerhouse Building is just one block from the neighborhood’s actual Powerhouse, which Jersey City is set to take over in the coming years, per a settlement agreement with the Port Authority.
“This transaction highlights our conviction in well-located, experiential mixed-use assets that benefit from strong sponsorship and increasing tenant demand,” said Evan Bell, Co-Founder and Managing Partner at Lorimer Capital. “The A&P Building is uniquely positioned as a destination asset within Jersey City’s Powerhouse Arts District, and we are excited to partner with KABR Group and Kushner Companies as they complete the lease-up and stabilization of this transformative project.”
The loan will fund tenant improvements, leasing costs, and operating needs as the sponsors execute their business plan and position the asset for permanent financing upon stabilization.
