Progress Capital announced on Oct. 14 that it secured a $27 million loan for the acquisition of General Kearny Apartments—a six-building multifamily property located at 41-109 Belgrove Drive in Kearny.
The borrower, Robert Tagliareni, has more than 40 years of experience investing in commercial real estate properties throughout New Jersey, focusing on mixed-use, multifamily, retail and office assets. In this latest acquisition, Tagliareni saw immense upside and opportunity for the property, but was met with some challenges from the seller.
Progress Capital’s Partner Brad Domenico along with selling brokers Niko Nicolaou and David Oropeza of Gebroe Hammer worked together as a team to tackle the timing challenges imposed by the seller to close within the expected time frame.
“Each deal has its own set of challenges. When working with a difficult seller, it is important to have a strong, knowledgeable team to aid in working through such challenges so that our client’s needs are met. Niko is a rock star so I knew having him involved would help immensely” Domenico said.
Luckily, securing financing for the deal proved to be less challenging. Brad worked with Michael Strauss from ConnectOne Bank to get an excellent financing structure to meet the borrower’s needs.
General Kearny Apartments sits in a highly desirable transit market in Hudson County with no rent control. The property is located on a renovated 3-acre site and offers one, two and three-bedroom units. The borrower’s plan is to immediately inject $1 million of capital into the asset to perform roof upgrades, install technology to monitor the heating systems throughout the buildings, update all common and lobby areas, install LED lighting, replace every door and upgrade the basement, including repainting and cleaning all mechanicals.
Over time, the seller invested extensively in exterior building renovations and landscaping, since purchasing the property 17 years ago. An architect was retained to design and oversee the improvements. Renovations included new windows, exterior doors, entry awnings, railings/fencing, courtyards, centralized mailbox access, brick pointing, parapet waterproofing and sidewalks throughout the property, and new landscaping.
The property also features well-manicured grounds with seasonal plantings, new concrete walkways, modern railings and decorative brickwork. It benefits from on-site laundry facilities and parking/storage that generate additional cashflow, plus on-site leasing office and maintenance services. Street parking for tenants and 29 off-street parking spaces are available for a fee.