A joint venture involving SJP Properties, Claremont Development, and Battery Global Advisors has secured a $135 million construction loan to develop The Lucy, a luxury rental project in Jersey City. According to the Commercial Observer, Kennedy Wilson provided the financing for the 444-unit development at 619 Grove Street. Additional equity was invested by funds managed by PCCP, though the specific amount was not disclosed.
The transaction was brokered by a Cushman & Wakefield team led by John Alascio. The planned 23-story building will primarily feature market-rate apartments but will also include 13 affordable units. Amenities for residents are set to include a rooftop pool, sundeck with grills, outdoor terraces, penthouse bar, coworking rooms, fitness center, game room, and 251 parking spaces.
Michael Graves Architecture is leading the design of The Lucy. The new structure will incorporate much of St. Lucy’s Church and rectory’s original architecture—a nod to its historic presence in the area. Two years ago, Catholic Charities of the Archdiocese of Newark opened a transitional housing facility across from the site as part of ongoing redevelopment efforts.
SJP chief executive officer Steven Pozycki stated: “We are proud to preserve the historic character of this site while creating a modern community that reflects Jersey City’s dynamic growth.”
The Journal Square neighborhood continues to see significant real estate activity. Last month Tyko Capital supplied $358 million in construction financing for Namdar Group’s developments at 29 Van Reipen Avenue and 612 Pavonia Avenue; these projects are expected to add over 1,100 residential units locally. In addition, Blackstone Real Estate Debt Strategies recently issued a $515 million loan for Kushner Companies’ One Journal Square development—which includes two towers and more than 1,700 units—with refinancing currently covering only its first phase.
