An effort that is repurposing a former factory along Hoboken’s southern border has obtained financing to complete the buildout as construction is humming along at a large Jackson Street property.
Madison Realty Capital, a Manhattan-based private equity firm, recently announced that it provided a $97 million construction loan to The Taurasi Group. The company is behind Southwest Market, which is revitalizing and expanding the historic My-T-Fine Pudding manufacturing building.
The property suffered a major fire in December of 2022 that was ruled accidental by authorities and required extensive demolition work. But the restoration of the main building that fronts Southwest Park is well underway, as is an expansion that will create a significant retail component.
“The Taurasi Group is an experienced developer of premium housing projects including numerous residential condominiums in Hoboken,” said Josh Zegen, managing principal and co-founder of Madison Realty Capital. “We are pleased to provide a flexible source of financing to support an experienced local borrower in the redevelopment of this property, which will help meet the strong demand for high-quality mixed-use residences in Hoboken.”
Designed by Nastasi Architects, the new portions of the development are set to rise nine stories and 104 feet at their highest points. The 123 residential units included throughout the complex are intended to be sold as condominiums, except the required 12 affordable units, which will be rentals.
A major component of the project’s ground floor involves the creation of a 25,500-square-foot supermarket space along the Newark Street side of the property. While a tenant has not officially been announced, a pre-submission form submitted by The Taurasi Group as part of the approval process noted that “initial communication with prospective anchor food tenant for the south side of the project indicates serious interest from Whole Foods, Aldi, and Sprouts.”
Besides the grocer space, the ground floor of Southwest Market will sport four other retail storefronts totaling 21,670 square feet. The proposal also includes an 11,780-square-foot publicly accessible interior atrium with a translucent third-floor roof plus smaller retail spaces, a facility the developer envisions as an “outdoor living room” for Southwest Hoboken.
One of the four buildings in the proposed complex will feature 54,600 square feet of office space on the 6th and 7th floors plus a six-story parking structure with 376 spaces for both residents and the public. Amenities for future inhabitants will include a finished rooftop facility with basketball courts and a swimming pool.
The Taurasi Group is aiming to wrap up construction work on their Southwest Market project by the third quarter of 2025.
