Developer Hugo Neu Group has secured $14.5 million of New Market Tax Credit (NMTC) loans from Capital One and New Jersey Community Capital (NJCC).
The NMTC loans included a $4 million allocation from Capital One Community Renewal Fund and a $10.5 million allocation from NJCC, which also provided Hugo Neu with a $2.5 million term loan.
The three loans will fund the construction and rehabilitation of The Annex, the third structure to be transformed as part of Hugo Neu’s multi-phase $1 billion redevelopment of the former WWI/WWII shipyard known as Kearny Point.
“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 Michael Meyer, Director of Development for Hugo Neu.
“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.”
The Annex features two floors of office space, modern amenities and break-out areas. Spanning 90,000 s/f, it adjoins Building 78, the first building to be renovated at the campus and now home to more than 200 businesses.
Hugo Neu has also created a Qualified Opportunity Zone (QOZ) Fund, HNG Opportunity Fund LLC, and invested a total of over $10 million into the fund for capital expenses associated with The Annex.