Prudential Mortgage Capital Provides $200M Loan for Refinancing of Jersey City’s Newport Tower
- Aug 30, 2012
Prudential Mortgage Capital Company provided a $200 million loan to Bentall Kennedy, the real estate advisor to Multi-Employer Property Trust’s Edgemoor REIT LLC, to finance the purchase of Newport Tower, situated in Jersey City, N.J.
Located at 525 Washington Boulevard in the Newport area of Jersey City, the 36-story, 22-year-old Newport Tower boasts amenities such as a full-service café, sundry shop, deli, on-site banking, covered parking and direct connection via a skywalk to the 1.2 million-square-foot Newport Centre Mall.
Cary Abod of Holiday Fenoglio Fowler’s Washington, D.C.’s office represented the borrower in the seven-year, 3.5 percent fixed-rate loan for the 1.1 million-square-foot Class A office tower, which stands as part of Jersey City’s 600-acre Hudson River waterfront Newport District.
“Newport Tower is one of the top buildings in the submarket with a solid history. The property has performed well throughout the downturn and we felt that it was poised for solid cash flow growth over the next few years as well,” Bryan McDonnell, a principal with Prudential Mortgage Capital Company’s Washington, D.C. office, told Commercial Property Executive. “As much as the property, we look to who we lend money to and the sponsorship here was also very attractive to us.”
The fixed-rate loan is a first mortgage for Bentall Kennedy’s purchase of the property.
“The Newport office market remained strong throughout the recent financial downturn and continues to perform well, making Newport Tower a highly desirable property,” said Mike Keating of Bentall Kennedy. “We are excited to partner with Prudential on this significant transaction.”
Currently, the building is 90 percent leased with tenants such as AXA, BNP Paribas, Brown Brothers Harriman, Bank of America Merrill Lynch, and Computershare.
“Over the last several years, the Newport submarket has become a vibrant, transit oriented, mixed use community with easy access to Manhattan,” McDonnell said. “The quality of the asset, its prime location near the Hudson River waterfront with easy access to New York’s financial center and the quality of the sponsorship with Bentall Kennedy made this transaction extremely attractive.”
The property carries LEED Gold distinction and is Energy Star certified.
Multi-Employer Property Trust is an open-end commingled real estate equity fund that invests in a diversified portfolio of institutional-quality real estate assets in the United States.
Bentall Kennedy is one of North America’s largest real estate investment advisors, serving the interest of more than 500 clients on assets of more than $27 billion across 140 million square feet of office, retail, industrial, apartment and hotel properties.