John Hancock Real Estate Finance Group has provided a $73 million loan on the 398-unit Vermella Harrison housing community in the northern New Jersey city of Harrison. The lender provided the 10-year fixed-rate loan to Russo Development, according to HFF which arranged the financing.
The five-storey Vermella Harrison is located at 1100 Frank E Rodgers Boulevard in Harrison’s waterfront Riverbend District. The property was built in 2015.
The real estate arm of John Hancock holds approximately $12.5 billion in commercial mortgage assets under management in more than 40 states. Russo has developed more than eight million square feet of real estate space throughout northern New Jersey.
The region has seen a “surge of development” of new multifamily units recently due to its proximity to Manhattan, according to a Marcus & Millichap report released this June. About 8,750 multifamily units will be delivered to the northern New Jersey multifamily market by the end of this year, up from the 6,440 delivered last year.
“Strong residential growth in Hudson County has quickly filled up new development in the area, resulting in vacancy maintaining the current cycle low,” read the report. The region’s multifamily vacancy rate sunk to 2.8 percent at the end of the second quarter this year.
John Hancock and Russo did not respond to requests for comment.