CIT Group Inc. announced that CIT Real Estate Finance served as lead arranger and administrative agent in a $140 million senior secured loan to Kushner Companies, a diversified real estate company, and the KABR Group, a real estate investment and management company. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.
Proceeds from the facility will be used to finance the development of a 50-story rental apartment building, as well as the acquisition of a parking garage and 7,200 square feet of retail space.
“We’re pleased to complete our fourth transaction with Kushner Companies to create a great mixed-use property that will benefit from its proximity to New York City and surrounding communities,” said Matt Galligan, President of CIT Real Estate Finance. “Our ability to put our commercial real estate expertise to work for Kushner and the KABR Group will enable them to develop the tallest rental apartment building in Jersey City offering unobstructed views of Manhattan, the Statue of Liberty and the George Washington Bridge.”
Chris Niederpruem, Managing Director, CIT Real Estate Finance, added, “We’re pleased to continue building our deep relationship with Kushner Companies and develop a new one with the KABR Group. With nearly 450 rental apartments with studio through two-bedroom layouts, this project is designed to attract young professionals who want a luxury product with convenient access to Manhattan and lower rents.”
Jared Kushner, President and CEO of the Kushner Companies, said, “Jersey City is a growing, vibrant area that offers residents a high quality of life and easy access to New York City. Matt and CIT have been tremendous partners over the years and they were the perfect team to help us and KABR on this transaction, which will lead to a new state-of-the-art tower and retail space in Jersey City.”
Adam Altman, Managing Member, of the KABR Group, said, “This is an exciting project close to the waterfront in Jersey City. The Exchange Place District, three blocks south of the project, is referred to as ‘Wall Street West’ and includes office operations for Goldman Sachs, UBS and Citibank. The live/work environment in Jersey City is amazing, catering to the interests of both millennials and families. We’re pleased to partner with the Kushner Companies on this Class A project and appreciate the financial expertise of CIT.”
Kushner Companies is a diversified real estate organization headquartered in New York City. It is responsible for the ownership, management, development and redevelopment of numerous properties. Its national reach consists of more than 20,000 multifamily apartments, as well as 10 million square feet of office, industrial and retail space throughout New York, New Jersey, Pennsylvania, Maryland, Ohio and Illinois.
The KABR Group is a real estate investment firm focused on opportunistic asset acquisitions. It has achieved success from its ability to identify, purchase and manage properties. Founded in 2008, KABR and its principals have raised approximately $150 million across three funds for investment in opportunistic and value-added properties. KABR currently operates a diverse portfolio including over three million square feet of office space, 3,000 multifamily units as well as industrial, retail and development properties in several states.
Founded in 2000, CIT Bank is the U.S. commercial bank subsidiary of CIT Group Inc. It provides lending and leasing to the small business, middle-market and transportation sectors. Founded in 1908, CIT is a financial holding company with approximately $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle-market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing.