10-25-19

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A S H I N G T O N , DC — Hoffman- Madison Water- W The Goldman Sachs Group, Inc., led the nonrecourse transaction Hoffman-Madison Waterfront close on construction loan for $847 million

ISSUE HIGHLIGHTS Volume 31, Issue 20 Oct. 25 - Nov. 7, 2019

& Connolly signed a 15-year lease in December of 2018 and will occupy nearly 300,000 s/f of the two trophy, mixed-use office towers, signaling the con- tinued success of The Wharf. “We’re thrilled to be part of a project that is significant to Washington DC’s transfor- mation,” said Ted Borter , co-head of Goldman Sachs’ Americas real estate financing group. The record-breaking transac- tion was brokered by Eastdil Secured, LLC , one of the country’s premier private real estate investment banking companies. “Due to the quality of spon- sorship and unparalleled value of The Wharf, this was one of the nation’s most competitive construction loans with signifi- cant interest from several fi- nancial institutions interested in fully underwriting the loan,” said N icholas Seidenberg , managing director at Eastdil Secured.  “Liberty Towers’ irreplace- able location, top-tier amenity package and unique views grant the property with in- herent pricing power, while the ability to upgrade units will increase rental revenue as ownership can mark rents to market,” the brokers wrote in their offering materials. “Liberty Towers is a rare op- portunity to acquire a Jersey City trophy asset in an irre- placeable Hudson waterfront location with the ability to capture significant rental premiums through unit reno- vations.” The property’s amenities were upgraded in 2015 but offered the potential to unlock additional value by renovating individual apartments, the brokers wrote. With views of Lower Manhattan and the Statue of Liberty, the towers also have 23,569 s/f of occu- pied retail space and six floors of garage parking, the offering said. 

SPOTLIGHTS

front (HMW) , a joint venture of Hoffman & Associates (formerly PN Hoffman) and Madison Marquette , the co-developers of The Wharf, along with joint venture part- ner, Public Sector Pension Investment Board (PSP Investments) , closed on one of the largest private construc- tion loan in the city’s history in the amount of $847 million. The Go l dman Sachs Group, Inc. , led the nonre- course transaction, along with syndicate members Starwood Capital Group, Mack Real Estate Group and Pentagon Federal Credit Union . “We are excited to welcome Goldman Sachs to the second phase of this vibrant water- front community,” said Monty Hoffman , founder and CEO of Hoffman & Associates. “It’s been nearly two years since the delivery of Phase 1 of The

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The Wharf

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outstanding facilities – from trophy and boutique office environments to luxury living enhanced by engaging retail and dining experiences,” said Amer Hammour , founder and chairman of Madison Marquette. The Wharf, a $2.5 billion and more than 3.2-million s/f, waterfront neighborhood, began construction on the sec- ond phase of the development in March, and has already secured Williams & Connolly LLP, one of the nation’s pre- mier law firms as an anchor tenant for Phase 2. Williams after Mack-Cali acquired Soho Lofts, a 377-unit rental com- munity in Jersey City’s emerg- ing Soho West neighborhood, for $264 million. The REIT, through its Roseland Resi- dential Trust subsidiary, has worked in recent years to ex- pand its multifamily portfolio along the Hudson waterfront through both acquisition and construction. Marshall Tycher , Rose- land’s chairman, said during Mack-Cali’s second-quarter earnings call in August that the company had also ac- quired a development site at 107 Morgan St. in Jersey City. He said at the time that the REIT was finalizing ap- provals for a roughly 800-unit development. In marketing Liberty Tow- ers earlier this year, the bro- kerage team hailed the of- fering as a chance to buy a well-known property within Jersey City, but one that has additional upside.

Wharf and its success has led to continued confidence as we develop Phase 2.” “With Goldman Sachs, we’re setting a new high bar for proj- ect financing in Washington,” said Kristopher Wojtecki , managing director, real es- tate investments, PSP Invest- ments. “We are now in an even stronger position to realize the full potential of Washington, D.C.’s waterfront.” “The second phase of The Wharf is already exceeding the first phase’s performance with great office preleasing, world-class architecture, and

EXECUTIVE WOMEN IN BUSINESS

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Conferences November 1, 2019 5 th Annual NJ CRE Leadership Conference November 6, 2019 4 th Annual DE CRE Forecast Conference December 2019 6 th Annual NJ Capital Markets Conference December 2019 4 th Annual Philadelphia Apartment Multifamily Conference For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea@marejournal.com

Mack-Cali Realty Corp. completes $409 million acquisition of Jersey City two-tower rental complex

JERSEY CITY, NJ — Mack-Cali Realty Corp. has closed on the latest addition to its Jersey City residential portfolio, acquiring a two- tower, 648-unit apartment complex for $409 million. The real estate investment trust, which is based in the city, announced in early August that

Liberty Towers

it had agreed to acquire the Lib- erty Towers property at 33 Hud- son St. It has now completed the acquisition of the twin 37-story buildings, which were built in 2003 and were among the first luxury apartment properties to usher in Jersey City’s water- front residential boom. A brokerage team including Jose Cruz, Kevin O’Hearn, Michael Oliver, Stephen Simonelli, Mark Mahasky and Andrew Scandalios — formerly of HFF but now of JLL — marketed Liberty Towers on behalf of JP Mor- gan Asset Management. The deal comes five months

Directory Shopping Centers.............................................7-16A CCIM PA/NJ/DE Chapter......................................26A Organization Events Calendar..............................28A Owners, Developers & Managers............... Section B Subcontrators/Contractors.................................5-9B Executive Women in Business Spotlight. .... Section C

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