$152M construction financing secured for luxury apartment building in Jersey City

MORRISTOWN, N.J., Aug. 29, 2024 – JLL Capital Markets announced today that it has secured $152 million in construction financing for the development of 35 Cottage Street, a 588-unit luxury apartment building to-be-built in Jersey City, to include a CHABAD Synagogue, Pre-School and the first dedicated party hall in Journal Square.

JLL represented the borrower, Namdar Group (“Namdar”), to secure the senior financing through Centennial Bank (“CCFG”) and the mezzanine financing through a private lender.

“Namdar was an early mover in the JSQ marketplace and has built an institutional quality portfolio of highly efficient multi-housing units to meet the continued market demand. JLL is excited to partner the CCFG and Namdar teams to bring to life the next building in their portfolio,” stated Didio, Jr.

“We are excited to have the opportunity to work again with the Centennial team on the development front in Jersey City,” added Andrew Namdar of Namdar Group.

With the future location of 35 Cottage Street, the community will be less than a five-minute walk from the Journal Square PATH Station. 35 Cottage is within 30 minutes of New York City's Penn Station, The World Trade Center and Newark's Penn Station. The complex will be conveniently situated in Journal Square in the heart of Jersey City, which has a low vacancy rate of 2.3% despite rising rents and an increase in supply.

Jersey City's multi-housing market has thrived thanks to the migration of office tenants from Manhattan, driving up demand for housing options. The city's demographics are particularly appealing, with nearly half of its households earning over $100,000 annually and a significant portion of the population being young professionals between the ages of 25 and 44. With the ongoing Journal Square Transportation Center redevelopment initiative and these favorable demographics, the neighborhood is well-positioned for sustained growth.

The JLL Capital Markets Debt Advisory team was led by Managing Director Thomas E. Didio, Jr and Senior Analyst Michael Mataras.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Namdar Group is a family owned and operated real estate investment and development firm headquartered in New York, Since 1979. The family is a major investor and developer of large-scale Transit Oriented Developments in major cities across the United States. To date, Namdar Group has delivered 1,500 residential units, with over 5,000 residential units currently under construction and development phases.

With offices in New York, Dallas, Los Angeles and Miami, CCFG is Centennial Bank’s national platform for commercial real estate and corporate cash flow lending. Centennial Bank is a wholly-owned subsidiary of Home BancShares, with assets surpassing $23B as of October 1, 2022 and ranked #1 of Forbes’ list of America’s Best Banks three times including 2018, 2019 and 2022.