Fairbridge has announced the funding of a loan in the amount of $32.5 MM secured by a 214,813-sf development located at 461-465 Market St, Paterson NJ, 07501.
The Property was the former home of The Paterson Armory, which was decommissioned many years ago, and the sponsors, Charles and Mathew Florio have approved plans and permits to convert the site into a fully amenitized apartment complex encompassing 138 residential units, 3 commercial units and 151 parking spots. The Sponsor’s business plan has focused on building functional and modern workforce housing in Paterson, an area that was in serious need of capital investment. This development would be another major step in that direction and would have the possibility of dramatically changing the make-up of this section of Paterson. The total development cost is anticipated to be $46.2 MM which would translate into a loan to cost ratio of approximately 70%. The Sponsor is committed to contributing nearly 30% of equity towards completing this project, much of which will come into play before this the funds from this loan are distributed. In addition, this will be a neighborhood changing project in the community as it will be one of the first large scale fully amenitized developments in Paterson, NJ
The Sponsors are experienced, well-known and well-respected housing developers in New Jersey with a successful track record of developing multi-family and mixed-use properties. They will be bringing significant equity into the deal and have already begun discussions with a conventional lender for take-out financing. Additionally, the sponsors have a strong track record of building and leasing up new developments in Paterson.
Due to the city’s proximity to New York City and easy access via major highways, Paterson has been selected as the right site for many companies that conduct business in the metropolitan New York area. In addition, the city’s proximity to the Port of New York/New Jersey and Newark International Airport makes it a desirable business location. Paterson is located at the crossroads of major transportation routes, close to international shipping ports, in the heart of the East Coast population center and a stone’s throw from New York City. The city offers manufacturers, light industry, warehouse operations, and high-tech companies many benefits. These include tax incentives, quality real estate available at fair prices, and energy savings plans. Paterson has always exhibited economic strength that rests in having a diverse population of hard-working t people which will lead to continued growth in the community. Finally, the fact that 74.3% of the households are renters and that the average rent is $2,100/month confirms that there is an appetite for a project like this.