EDA Assists Redevelopment of Landmark Building in Jersey City
35 Journal Square
The former Trust Building in Jersey City is the latest acquisition by the successful New York real estate developer Sackman Enterprises, and a huge step in revitalizing Jersey City. The beautiful 12-story classic limestone and brick building, now known as 35 Journal Square, was acquired by Sackman-formed Journal Square Properties.
The EDA recently approved a $1.6 million loan through its Local Development Financing Fund to finance tenant allowances for the fit out of office space. This funding supplements a $4.2 million New Markets Tax Credit (NMTC) loan approved in September of 2007 for significant improvements to common areas, bathrooms, mechanical systems, and utilities.
In addition to the building's capital expenditures, the NMTC loan is being used to refinance the existing second mortgage loan. Refinancing significantly reduces debt and mitigates the negative cash flow until the project is stabilized. NMTC is a federal program created to attract investment capital to low-income communities by giving investors a tax credit, which ensures a return on their investment. The program offers financing for commercial projects in distressed areas throughout New Jersey, at a fixed annual interest rate of 3 percent.
Originally built between 1898 and 1921, 35 Journal Square is located in the heart of Jersey City's Central Business District. The corner property features two bronze and glass doors leading to a lobby of terrazzo floors and marble walls. The first floor is famous for its turn-of-the-century bank, featuring painted plaster ceilings, bronze teller cages, chandeliers, and Doric columns.
As one example of several recent commercial and residential developments in Jersey City, 35 Journal Square is located just 20 minutes from Manhattan and five minutes from Newark International Airport.
For more information on leasing commercial space in 35 Journal Square, visit www.35journalsquare.com.