Arbor bankrolls Jersey City rental development with $30M construction loan

Jersey City’s Communipaw Avenue is welcoming another development to its growing ranks.

West of Hudson Properties landed a $30 million construction loan for a project at 859-869 Commuinpaw Avenue, according to Progress Capital, which brokered the financing. Arbor Commercial Mortgage, an arm of Arbor Realty Trust, provided the non-recourse loan.

West of Hudson, led by Avi Gagin and Eyal Gagin, is developing a six-story property at the site. The complex will include 155 residential units and span 133,000 square feet, including 3,100 square feet spread across three commercial units.

Amenities are slated to include a gym, a lounge, a kids’ club, coworking spaces and a bike room.

The development is expected to be completed in the second half of next year, according to the Commercial Observer. Progress Capital’s Brad Domenico arranged the transaction alongside Arbor’s Eric Regenbogen.

West of Hudson did not respond to The Real Deal for comment. The New Jersey-based developer was spotted up on the radar a few years after it acquired a six-apartment-building portfolio in Jersey City for $21.5 million. The firm has properties in other New Jersey municipalities, as well as Pennsylvania.

Multifamily development is trendy across Jersey City as companies try to take advantage of rent pricing frustrations on the other side of the PATH (though Jersey City is itself an expensive market). Just down the street of West of Hudson’s project, Skyline Development proposed an 18-story, 420-unit unit property at 417 Communipaw Avenue. A community group, however, tried to foil the project through a lawsuit.

Elsewhere on the street, the city approved a solar-heavy project at 558 Communipaw Avenue in the spring, according to Jersey Digs. The five-story building is slated to have 1,200 square feet of retail space and 20 residential units. The project is believed to be the first in the city to feature a brick and composite panels cladding system with an integrated solar energy capability component.

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