Plaza, located at 100 Hamilton Plaza in Paterson, NJ, is a high-rise class A office tower. The property features a full-service fitness center club, a reception desk with security guard and a gourmet cafeteria, and offers panoramic views of the city from the 12th floor. The commercial office tower houses a variety of tenants, including state and legal agencies, and medical and financial professionals.
The challenge that Meridian was facing during this transaction was that the property is the only office tower in Paterson, in a market that is slowly beginning to pick up. The property was 97% occupied, but the market vacancy was 15%. The property has an appropriation clause and the primary tenant is the State of NJ. If the government discontinues the funding, any tenant has the right to vacate at any point, which was a concern to lenders.
As part of the solution, Meridian focused on highlighting the property’s high occupancy, versus the market vacancy. Additionally, the building is situated in the heart of Paterson’s Central Business District, directly across from the NJ Transit’s main line to Hoboken and is adjacent to the Robert Roe Federal Building, the Passaic County Courthouse, and the County Administration building, which makes this asset very attractive. “Ultimately, because of its location and high occupancy, we were able to demonstrate Alexander Hamilton Plaza as a unique business opportunity and negotiated a 10-year loan, featuring a fixed rate and the $11.1 million in proceeds reflect a 75% loan-to-value ratio,” said Meridian Capital Group managing director, Barry Lefkowitz. Meridian’s VP, Charles Nussbaum, and VP, Josh Munk assisted in the transaction.