Grove Pointe, Jersey City, New Jersey. Client: Schenkman/Kushner

Capitalization of Mixed Use Development Project

Savills advised the developer of a $180 million mixed - use high rise residential development project, consisting of 525 condominium and rental units, a 529 car garage and 20,000 square feet of retail space, in developing and implementing a debt and equity capitalization plan for the project that was cost effective and minimized the development risk to the sponsor.

 

The client sought the most efficient combination of debt, mezzanine and equity financing that assured the greatest return to the client, maximized on-going ownership of the project and minimized both personal guaranties and any requirement for a substantial developer equity contribution.

 

As the project is located within an empowerment zone and designated redevelopment area of Jersey City at the heart of the Old World Historic Downtown and immediately adjacent to a mass transit station in need of upgrading, the developer also needed to satisfy community requirements and sensitivities to win project approval.

 

Savills's services in this assignment consisted of the following:

  • Assisting the developer in creating a redevelopment plan and site plan
  • acceptable to both the city council and neighborhood groups and financeable
  • by third party investors and lenders.
  • Evaluating and recommending potential short and long-term capitalization
  • alternatives for the project including a variety of public, agency and
  • conventional debt programs.
  • Preparing an offering memorandum for debt, mezzanine and equity capital
  • sources and soliciting proposals to capitalize the project.