A joint venture partnership of affiliates of Tucker Development Corporation, Ares Management and Kushner Real Estate Group has secured $218 million in financing for Phase I of Hudson Lights, the one-million-square-foot mixed-use redevelopment of an eight-acre site at the base of the entrance to the George Washington Bridge in Fort Lee, NJ.
The U.S.-based unit of international real estate services firm, Savills, arranged the debt and equity capitalization, including a $117 million construction loan provided by Sovereign Santander Bank.
The financing will allow for construction to proceed on the first phase of Hudson Lights, comprising approximately 143,000 s/f of retail space, 864 parking stalls and 276 luxury apartments.
Phase I of Hudson Lights will total approximately 517,000 s/f of commercial and residential space, exclusive of structured parking.
Tucker Development is constructing Hudson Lights with its development partner, KRE Group. Tishman Construction Corporation is serving as the development’s general contractor.
KRE Group will also assist with property management for the development’s residential component upon completion. Robert K. Futterman & Associates is serving as the development’s exclusive retail leasing agent.
“Receipt of this critical financing is a testament to the demand that exists in the market for thoughtfully designed, mixed-use developments in prime locations, as well as the strength of the world-class team that has been assembled to deliver Hudson Lights,” stated Richard H. Tucker, president and CEO of Tucker Development.
“We look forward to soon commencing construction on what promises to be one of the region’s foremost, urban-inspired destinations for shopping, dining, entertainment and luxury residential opportunities.”
Designed by architecture and planning firm Arquitectonica, Hudson Lights is the western portion of a 16-acre site in Fort Lee that will be comprehensively redeveloped.
The development will front on Lemoine Avenue, Main Street, Park Avenue (currently Martha Washington Way) and Bruce Reynolds Boulevard. Further, two new roadways will be constructed as part of the redevelopment. The new Central Avenue will link Lemoine Avenue and Park Avenue. Hudson Street, the focal point of the pedestrian-oriented retail, will be constructed between Main Street and Central Avenue.
The fully entitled second phase of Hudson Lights will include an additional 201 residential units, approximately 50,000 s/f of retail space and parking, as well as a 175-room hotel. The zoning also affords the development the option for an office building of up to 430,000 s/f.
Jeffrey W. Baker, executive managing director of Savills, said the financing deal demonstrates confidence in the New York Metropolitan market fundamentals and the availability of capital for top-quality development projects.
“Upon completion Hudson Lights will be one of the premier infill, mixed-use developments in the nation,” said Baker. “The project will be anchored by a mix of retail, restaurant and entertainment space, which will create a unique urban shopping environment for residents and visitors.”