New York-based investment group 601W Companies has landed $375 million to finance the acquisition, renovation, and lease-up of Harborside 1-3, a three-building office complex in Jersey City. The property flanks the Hudson River and comprises more than 2 million square feet of commercial space.
Harborside 1 is currently vacant following a recent renovation project designed to suit modern tenant preferences. The renovation was completed by Elkus Manfredi and former building owner Mack-Cali Realty, which has rebranded as Veris Residential. Harborside 2 and 3 are currently 81 percent leased to long-term tenants with significant remaining lease terms. All three buildings are connected and feature cohesive exteriors with geometric façades comprising white, black, gray, and blue components.
601W Companies plans to attract new tenants by enhancing Harborside’s existing common areas with new tenant amenity spaces. These will include a fitness center, a lounge with a roof deck, and a conference center. The new owners also intend to bring 90,000 square feet of retail space to the property.
“Post-renovations, Harborside will epitomize the office product that remains in vogue with end users despite the turbulence that the COVID-19 pandemic unleashed on the office market,” said Sang Kim, vice president at Lionheart Strategic Management. “With its large floor plates, high ceilings, and oversized windows, Harborside 1-3 will surely be the best-in-class office product in a dynamic growth area, especially considering its spectacular planned amenities, adjacency to mass transit, and unparalleled views of the NYC skyline.”
Lionheart Strategic Management LLC, an affiliate of Fisher Brothers that manages capital on behalf of third-party investors, provided $150 million in financing on behalf of an institutional investor to 601W Companies. Lionheart’s financing included a senior mortgage loan, a mezzanine loan, and a preferred equity tranche.
The acquisition is also being partially financed by a senior loan jointly provided by Citigroup and Bank of Montreal that is secured by a portion of the portfolio.