Developer secures $14.5M in financing for The Annex at Kearny Point
NJBiz.com | By: Jessica Perry | March 4, 2020 7:48 am
Kearny Point will seek to serve small businesses, startups and other entrepreneurial enterprises with a third tower expected to be completed in April.
Toward that end, Hugo Neu Group, the recycling company and redeveloper behind the former World War I and World War II shipyard, said March 3 it received three loans totaling $14.5 million to fund construction and rehabilitation of The Annex, a 90,000-square-foot structure adjoining the property’s Building 78.
The New Market Tax Credit loans include a $4 million allocation from Capital One’s Community Renewal Fund and a $10.5 million allocation from New Jersey Community Capital, which Hugo Neu said also provided the company with a $2.5 million term loan.
The developer said it previously created the HNG Opportunity Fund LLC, a Qualified Opportunity Zone, into which it has invested more than $10 million for capital expenses associated with the project.
“We’re incredibly excited by the opportunity to bring a flex office environment like The Annex to Kearny Point’s already thriving community of innovative and forward-thinking companies,” said Hugo Neu Director of Development Michael Meyer in a statement. “Lenders like Capital One and New Jersey Community Capital not only make projects like this possible, but remain critical to the continued realization of our vision at Kearny Point: to provide opportunities to businesses of all shapes and sizes, and to become a model for environmentally and socially conscious redevelopment.”
Sustainable development efforts are present in the design of the two-floor Annex, which includes office space, modern amenities, break-out areas and a naturally lit craneway. Among improvements at the building is a “complete green” street, featuring integrated stormwater management, a carbon adaptation garden and carbon sink, and a 1,200 kilowatt resilient microgrid with solar and battery storage, Hugo Neu said.
This sustainable mindset extends to the tenants the space hopes to attract, like those operating to advance alternative energy, energy conservation and other related initiatives. According to Hugo Neu, The Annex also aims to promote social justice through programs supporting prisoner reentry services, training to enhance workers’ skills and accessibly priced workspaces.
Building 78 was the first property to be renovated at the 130-acre complex and, according to the developer, houses more than 200 businesses.
“It’s impossible not to be inspired by Kearny Point, its success stories, and its plans for the future,” said NJCC President Wayne Meyer in a statement. “NMTCs are important building blocks for projects like Kearny Point and allow us to effect meaningful change. Hugo Neu’s commitment to sustainable development, local economic growth, and equitable and inclusive work environments is unparalleled.”
