Jersey City Waterfront office building sells for $300 million
A 12-story office building on the Jersey City waterfront sold to Vision Properties and Hana Alternative Asset Management for $300 million.
Spear Street Capital and PFA Pension have sold the 433,197 square foot building, according to the Commercial Observer. Natixis provided $197 million in financing, arranged by Progress Capital.
Spear Street bought 70 Hudson Street — and its sister office building at 90 Hudson Street — in late 2019 for $299 million. The building’s tenants include TD Ameritrade, Federal Home Loan Bank, Gucci and software maker Fidessa. The commercial portions of the building are occupied by CVS, Row House boutique fitness studio, and Maman Bakery.
Since 2019, Spear Street has spent over $20 million on improvements to the property. David Bernhaut of Cushman & Wakefield, which marketed the property, told the Observer that these additions include an atrium lobby, renovated parking garage and finished tenant space.
Office markets in New York and the Garden State have suffered in the wake of the pandemic and faced an uncertain future at the end of 2021 amid a resurgence of new coronavirus cases.
However, the New Jersey waterfront has closed a few big deals in recent months, including for the Waterfront Corporate Center in Hoboken. Sources told the Observer that SJP Properties, along with partner David Werner Real Estate Investments, paid approximately $210 million for the 14-story office and retail building.
Residential real estate activity in the area has also picked up as New York developers look across the river.
Sequoia Development Group landed $95 million in funding last month to build a 16-story, 300-unit multifamily project at 711 Montgomery Street. The Long Island-based Namdar Group secured $96 million in November to build 235 residential units at 26 Van Reipen Avenue, in addition to 576 units at 626 Newark Avenue.
[CO] — Orion Jones