An affiliate of Mosaic Real Estate Credit has provided Skyline Development Group with $55.5 million in construction financing for Churchill Tower, a 70-unit luxury condominium development located on the Hudson River Waterfront in North Bergen, New Jersey.
The shovel-ready site was acquired in November 2018 with substantial improvements in place. A portion of the proceeds from Mosaic’s five-year loan was used to refinance the existing acquisition loan.
The property is located directly off River Road, on the border of Edgewater and North Bergen, a former industrial area that has reinvented itself as an upscale urban community due to its accessibility to Manhattan. The prime transit-oriented site is three miles from the Lincoln Tunnel, four miles from the George Washington Bridge, and two miles from the Port Imperial Ferry Terminal and LightRail Station.
As homebuyers continue to be priced out of Manhattan and Brooklyn, households in Bergen with incomes in excess of $200,000 are expected to grow substantially over the next five years, which bodes well for the luxury condominium market, according to Alex Ovalle, Managing Director and Head of Originations for Mosaic.
“The Sponsor has had success developing similar projects within this submarket, and our capital will allow them to create a best-in-class condo project in a very desirable condo market with very little developable land,” said Ovalle.
Skyline, whose recent local developments include the 377-unit Soho Lofts, and the 232-unit Cast Iron Lofts II, will act as general contractor.
The financing was arranged jointly by JBA Equities and NMK Companies.
Mosaic Real Estate Investors and its’ debt platform, Mosaic Real Estate Credit was founded by industry veterans Ethan Penner and Vicky Schiff. Mosaic is focused on addressing unmet needs by providing creative bridge and construction debt capital to borrowers aiming to add value to their assets through development, redevelopment and repositioning. Mosaic’s investments include first mortgage loans, as well as mezzanine or preferred equity structures. Mosaic has originated over $1.5B in transaction volume to date. For more information on Mosaic Real Estate Credit, please visit www.mosaicrei.com