Cushman & Wakefield arranges loan from Investors Bank to SilkLofts
Investors Bank has provided developer SilkLofts with a $22m loan to refinance a former factory-turned-luxury residential loft building in Bayonne, New Jersey, Real Estate Capital has learned.
The seven-year loan carries a fixed rate of 3.375% with a five-year extension option.
“Our challenge in this financing was securing full loan proceeds despite the fact that when we went to market, the property was not fully stabilized,” said George Gnad, the Cushman & Wakefield broker who exclusively handled the transaction.
The redeveloped five-story SilkLofts building features five studio, 26 two-bedroom and 48 one-bedroom units, in addition to six private artist lofts, with exposed brick, hardwood floors and high ceilings.
The property, at 154-157 Avenue E, is closely tied to Bayonne’s industrial roots, having originally housed the century-old Maidenform Brassiere, which gave rise to the modern bra and during World War II also manufactured military parachutes and carrier pigeon vests, all made primarily from silk.
SilkLofts president Douglas Stern, who purchased the property in 2009, salvaged the original brickwork and repurposed longleaf yellow pine for interior columns, aiming to create a ‘Brooklyn-style’ loft feel. A community brick pizza oven which feeds directly into the original industrial smokestack.
“We used the finest materials and craftsman to honor Maidenform’s past while at the same time bringing modern features to residents who wanted a luxury loft experience,” Stern said.
The SilkLofts building occupies about three city blocks on the corner of 18th Street and Avenue E. The first building, erected in the late 1890s, was home to the Swiss silk manufacturer Schwarzenbach-Huber. Maidenform bought the building in 1931 and stayed until 2007.