Kearny, NJ Brad Domenico of Progress Capital secured a $27 million loan for the acquisition of “General Kearny Apartments,” a six-building multifamily property located at 41-109 Belgrove Dr.
The borrower, Robert Tagliareni, has over 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, who owned the property for 17 years.
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 their 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. Domenico worked with Michael Strauss from ConnectOne Bank to get an excellent financing structure to meet the borrower’s needs. “Michael was great to work with. He was very accommodating and provided what we needed to allow time and an interest-only period for my client to implement his plan for the property. ConnectOne is a class act and a pleasure to work with,” said Domenico.
General Kearny Apartments sits on a renovated three-acre site and offers one, two and three-bedroom units. The borrower’s plan is to immediately inject $1 million of capital into the property. Improvements will include roof upgrades; technology to monitor the heating systems throughout the buildings; updating all common and lobby areas; installing LED lighting; replacing every door; and upgrading the basement including repainting and cleaning all mechanicals.
Over time, the seller had invested extensively in exterior building renovations and landscaping since purchasing the property 17 years ago. A leading architect was retained to design and oversee the improvements. Renovations included new windows, new exterior doors, new entry awnings, new railings/fencing, new courtyards, new centralized mailbox access, new brick pointing, parapet waterproofing, new sidewalks throughout the property and new landscaping.
The property also features grounds with seasonal plantings, new concrete walkways, modern railings and brick work. The property benefits from on-site laundry facilities and parking/storage which 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.
General Kearny Apartments is in the Belgrove neighborhood adjacent to other housing, shopping including a supermarket-anchored power center and retail. Within walking distance is the “Kearny Connection,” dubbed the Midtown Direct, with service directly to New York’s Penn Station. There is no need to travel to Hoboken for PATH service. The $70 million project cut travel time for commuters by 20 minutes.
“Sometimes it takes a little more muscle to make a deal happen but it’s nothing we can’t handle. That’s why having strong lending relationships in the industry are important. We’re really excited to see Bob’s vision of the property come to life. It’s one of the pleasures of the job to see neighborhoods transform.” Domenico said.
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