Savills Completes $218 Million Capitalization Of Fort Lee, NJ Mixed-Use Development Project
Savills LLC -- the US-based unit of Savills, an international real estate services firm -- has arranged $218 million in debt and equity capitalization on behalf of Tucker Development Corporation, Ares Management and Kushner Real Estate Group for the development of Hudson Lights at Fort Lee.
The shovel-ready, 517,000 square foot mixed-use development is located along the New Jersey “Gold Coast” at the base of the George Washington Bridge, just across the Hudson River from Manhattan. Upon completion of this initial phase of the project — scheduled for late 2015 — Hudson Lights will feature approximately 276 luxury rental apartments, 143,000 square feet of premier ground-floor retail space, and 864 parking spaces.
As part of the capitalization, Sovereign Bank, a unit of Banco Santander SA, has provided a $117 million construction loan facility for the project. Construction will commence immediately.
“Savills’ depth of capital markets experience, combined with the sponsors’ proven track record and the strength of the project, were critical factors in arranging joint venture equity and construction financing,” said Jeffrey W. Baker, Executive Managing Director of Savills. “This transaction demonstrates confidence in the New York Metropolitan market fundamentals and the availability of capital for top-quality development projects led by top caliber sponsors.”
Baker added that the irreplaceable Gold Coast location and quality of the project — designed by the internationally recognized architectural and planning firm Arquitectonica — is expected to garner tremendous interest.
“Upon completion Hudson Lights will be one of the premier infill, mixed-use developments in the nation,” he said. “The project will be anchored by a mix of retail, restaurant and entertainment space, which will create a unique urban shopping environment for residents and visitors.”
Residential amenities will include a pool, lounge, fitness center, and rooftop terrace and gardens. Rental units will feature hardwood flooring, granite countertops, stainless steel appliances, and floor-to-ceiling windows.
About Tucker Development Corporation Tucker Development Corporation, founded by Richard H. Tucker in 1996, is a leading developer and manager of shopping centers and mixed-use properties in key Midwest and East Coast barrier-to-entry markets. The company pursues mixed-use and retail-related real estate investments that provide an opportunity to enhance value through development, redevelopment, repositioning and recapitalization. Tucker Development Corporation’s development, management and leasing portfolio exceeds five million square feet and continues to grow through the company’s development and acquisition activity. For additional information on Tucker Development Corporation, visit www.tuckerdevelopment.com.
About Ares Real Estate Group
The Ares Real Estate Group is a leading global real estate asset manager with approximately $8 billion of committed capital under management as of August 31, 2013. Headquartered in New York, the Ares Real
Estate Group has approximately 70 investment professionals and approximately 130 total professionals located in 15 offices across the U.S., Europe and India. Led by Lee Neibart and John Bartling, the Group offers comprehensive real estate products across the risk-return spectrum, spanning private equity and private debt with a focus on major property types.
About Ares Management LLC
Ares Management LLC is a global alternative asset manager and SEC registered investment adviser with approximately $66 billion of committed capital under management and approximately 700 employees as of July 1, 2013. Ares is headquartered in Los Angeles with professionals located across the United States, Europe and Asia and invests across the capital structure – from senior debt to common equity. Ares' investment activities are managed by dedicated teams in its Capital Markets, Private Debt, Private Equity and Real Estate investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value. For additional information, visit www.aresmgmt.com.
About Kushner Real Estate Group
Kushner Real Estate Group (“KRE Group”) is a 30 year old New Jersey real estate development and management company founded by Murray Kushner and Eugene Schenkman. The company has developed, owns, and manages over 5 million square feet of commercial, retail and industrial property and owns over 9,500 apartments, of which KRE Group manages approximately 4,500 units. In addition, KRE Group has several thousand additional residential units in its development pipeline. KRE Group takes a multidisciplinary approach to property development, employing in-house the critical expertise required for the successful development of large mixed-use projects. For additional information, visit www.thekregroup.com.
About Savills LLC
Savills LLC is a real estate investment banking firm offering debt and equity placement, note sales, investment sales, cross-border investment, advisory and asset management services across all property types. Savills’ North American headquarters is in New York, with offices in suburban Washington DC and Orange County, California. The professionals of Savills LLC have executed more than $50 billion in real estate transactions, spanning the full range of property types, including multifamily, office, medical office, retail, industrial and hospitality. Listed on the London Stock Exchange, Savills plc is one of the world's leading real estate advisors, with more than 200 offices and approximately 26,000 professionals in principal cities throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.