Claremont secures $16M loan for homeless shelter, 444-unit multifamily venture

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Claremont Development has secured a $16 million loan for the
acquisition and pre-development financing of St. Lucy’s Tower and construction
financing for a 56,000 s/f shelter in Jersey City.

Cushman & Wakefield served as the exclusive adviser to Claremont
in securing the loan from Lionheart Strategic Management. An Equity, Debt &
Structured Finance team of John Alascio, Chuck Kohaut, TJ Sullivan, and Zachary
Kraft represented the borrower.

Built in 1884 for the former St. Lucy’s Church at 619 Grove Street, the 23-story mixed-use redevelopment will include 444 residential units, 5,600 s/f of ground floor commercial space, a five-story parking deck and 18,500 s/f of indoor and outdoor amenity space (rendering top).

Across the street at 610-620 Grove Street, a 56,000 s/f shelter will include community facilities, space for administrative and counseling services and a homeless shelter operated by Catholic Charities. Completion is slated for the fourth quarter of 2022.

Mayor Steven Fulop joined the Roman Catholic Archdiocese of Newark, Catholic Charities, Claremont Development, and Arc Building Partners to officially begin construction on the development last week (picture above).

“With this groundbreaking, we’re building a safe space that
will not only provide food and shelter for those in need, but we’re also
utilizing St. Lucy’s established success as the foundation to build a brighter,
more prosperous future for our neediest residents and families for generations
to come,” said Mayor Fulop.

“As we work collectively to eradicate homelessness, the City
is committing over $2 million in grant funding to help expand beyond traditional
shelter services to also include more permanent housing options and
transitional support as well as everyday necessities that better address the
health and well-being of our most vulnerable residents.”

The newly expanded St. Lucy’s campus will feature a total of
165 beds for individuals who are homeless, 14 units of transitional housing for
individuals with HIV, five permanent supportive housing units specifically for
families, and 15 permanent affordable housing studio apartments.  The housing and public services site also
provide its temporary and permanent residents with access to comprehensive case
management services offered on-site, with the goal being to help the individual
find permanent housing, find employment, and address any other needs that they
may have, such as physical health, mental health, or substance use.

In the new shelter, Catholic Charities will have staff
offices on the second floor where clients can be seen.  The second floor will also include a drop-in
area for nonresidents in need who can utilize St. Lucy’s services for showers,
meals, and the new laundry facilities.

The St. Lucy’s Public Benefit Project and related St. Lucy’s
Tower development effort has been underway since 2015 and includes a series of
now complete property exchanges, zoning approvals, and overall planning
consent.

“It’s amazing to see several years of hard work come
together in a project kickoff moment like this, especially with the amount of
different governing agencies, local interest groups, stakeholders,
professionals and partners that have been intricately involved in this process
to get us where we are today.” said Maximilian Dorne, Partner at Claremont
Development. “We know the St. Lucy’s Project is the important first step in
reimagining the entire development site, and we couldn’t be more excited to
begin seeing this project come to fruition.”

 “This development is
yet another example of the type of community-centric, high-profile projects
that we love to help build—because efforts like this really do make a
difference for local residents,” said Frank Ciminelli, President and CEO of Arc
Building Partners. “As part of our role as project partner and in coordination
with the St. Lucy’s groundbreaking festivities, we are also pleased to share
that Arc Building Partners will be donating two vehicles—separate Ford truck
models from 2015 and a 2019 (valued at $40,000)—to help support Catholic
Charities’ ongoing transport needs. The donation will include a $1,000 fuel
card for usage with the vehicles as well.”

The current construction schedule calls for expected
build-out completion by late-2022 or early-2023.

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