#United States #Real Estate #Jersey City #Hudson House

Strategic Partners Acquire Hudson House

In a landmark move, a coalition of financial powerhouses, including Strategic Value Partners (SVP), One Investment Management (OneIM), RXR, and Columbia Property Trust, have successfully acquired and recapitalized Hudson House, an expansive multifamily residential portfolio boasting 829 units in Jersey City's vibrant Soho West neighborhood. This significant transaction marks a new chapter in Jersey City's real estate landscape, further enhancing its reputation as a desirable living destination.

The Hudson House project is notable not only for its scale but also for its modern, luxurious amenities. The development has already seen the completion and leasing of its first phase, while remaining phases are on track for completion this summer, paving the way for new residents to move in shortly thereafter.

Transformative Investment

The deal involved a comprehensive refinancing of the existing senior mortgage through a new loan facilitated by Apollo Global Management, aimed at ensuring the completion of construction, effective leasing strategies, and ongoing enhancements to the property. These efforts highlight the partners' collective vision to maximize long-term value through strategic investment in urban residential properties.

According to Mike Ungari, SVP's Head of Real Estate, "Hudson House is a transformative project for the Jersey City residential market. Our partnership with OneIM, RXR, and Columbia showcases our ability to navigate complex capital structures to drive long-term value in institutional-quality real estate." This investment reflects confidence in the city's growth and its potential as a prime residential market.

Project Features

Hudson House encompasses three distinct components, each designed to enhance the living experience for its residents. The expansive units average a generous 1,136 square feet in size. Residents will enjoy an extensive array of high-end amenities that include:

• - A resort-style pool deck
• - A state-of-the-art fitness center equipped with three saunas and a yoga studio
• - A golf simulator for sports enthusiasts
• - Multiple lounges for social gatherings
• - Approximately 48,000 square feet dedicated to ground-floor retail space

These features, coupled with the building's strategic location, assure exceptional connectivity to Manhattan and nearby transit hubs, such as the Holland Tunnel and PATH system, ensuring a blend of convenience and luxury for urban dwellers.

Expert Insights

Russ Young, Executive Vice President of Investments at RXR, expressed enthusiasm for the project, noting, "This high-quality asset in a uniquely desirable location, with further phases underway, solidifies RXR's continued presence in structured transactions, totaling over $2 billion in capital placements in the last two years."

Columbia's President and CEO, Adam Frazier, echoed this sentiment: "We're eager to leverage our multifamily expertise and integrated platform to ensure the successful development of Hudson House."

Advisory and Legal Teams

The complex nature of this transaction required expert guidance. JLL advised the Manhattan Building Company regarding various aspects of the deal, while Cushman Wakefield provided assistance to other participants involved in the acquisition and recapitalization process. Furthermore, legal counsel was provided by Davis Polk Wardwell LLP, Gibson Dunn Crutcher LLP, Milbank LLP, and Cleary Gottlieb Steen Hamilton LLP, who ensured the legality and compliance of the transaction.

About Strategic Value Partners

Founded in 2001, SVP has established itself as a leading global alternative investment firm with a focus on special situations, private equity, and opportunistic credit. Currently, SVP manages around $22 billion in assets and has executed investments exceeding $53 billion, securing a strong footprint in the competitive real estate market.

Conclusion

The acquisition of Hudson House signifies a crucial investment in the Jersey City market, providing promising opportunities for potential residents and investors alike. Through this collaboration, SVP and its partners are not only transforming the skyline of Jersey City but also setting a benchmark for future urban developments.