Jersey City waterfront office building sells for $300 million
A 12-story office building on the Jersey City waterfront has been sold to Vision Properties and Hana Alternative Asset Management for $300 million.
According to the Commercial Observer, Spear Street Capital and PFA Pension sold the 433,197-square-foot building. Natixis provided $197 million in financing arranged by Progress Capital.
Spear Street bought 70 Hudson Street — and the twin office building at 90 Hudson Street — for $299 million in late 2019. The building’s tenants include TD Ameritrade, Federal Home Loan Bank, Gucci and software maker Fidessa. Retail portions of the building are occupied by CVS, boutique Row House gym and Maman Bakery.
Since 2019, Spear Street has spent more than $20 million on upgrades at the property. David Bernhaut of Cushman & Wakefield, who marketed the property, told the Observer that the additions include an atrium lobby, renovated parking garage and expanded tenant space.
Office markets in New York City and the Garden State suffered from the pandemic and faced an uncertain future in late 2021 amid a resurgence of new coronavirus cases.
However, the New Jersey Waterfront has closed some big deals in recent months, including for Hoboken’s Waterfront Corporate Center. Sources told the Observer that SJP Properties, along with partner David Werner Real Estate Investments, paid about $210 million for the 14-story office and commercial building.
Residential real estate activity in the area has also picked up as New York City developers look across the river.
Sequoia Development Group last month secured $95 million in financing to build a 16-story, 300-unit multifamily development at 711 Montgomery Street. 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