jersey city portfolio - teaser and ca

7/27/2019 Jersey City Portfolio - Teaser and CA

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JERSEY CITY APARTMENT PORTFOLIO1100 UNIT TROPHY INVESTMENT OPPORTUNITY

THE OFFERING

Savills LLC (Savills) has been retained by affiliates of Kushner Real Estate Group (KRE Group or KRE)

and Ironstate Development (Ironstate), collectively the Sponsor, as exclusive financial advisor for the

Jersey City Multifamily Portfolio.

The Jersey City Multifamily Portfolio consists of two Class A luxury multifamily assets - 18 Park Avenue and

Grand & Grove (individually the Property, collectively the Properties or the Portfolio). The Properties

are located in downtown Jersey City, a thriving transit-oriented extension of Manhattan and one of the

most desirable apartment markets in the nation. Positioned on the bank of the Hudson

River directly across from Manhattan, Jersey City offers an urban, commuter-friendly

lifestyle for its residents and provides access to New York City in less than fifteen minutes

through a variety of convenient transportation options.

Exclusively Offered By


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INVESTMENT HIGHLIGHTS

The Portfolio is comprised of 1,102, new construction Class A apartment units with 750,000 rsf, 570 enclosed parking

spaces and approximately 16,000 rsf of retail space located in one of the nations strongest markets. A prime

location, exceptional sponsorship, trophy quality and substantial scale make the investment one of the most

attractive opportunities in the country. 18 Park is a midrise building with 422 units currently under construction with

initial TCO scheduled for February 2014. Grand & Grove is a fully entitled 680 unit high-rise apartment building

scheduled to commence construction in June 2014 and receive its initial TCO in April 2016. The Portfolio rep

resents an extremely rare opportunity to invest with a best-in-class sponsor in a 1,102 unit trophy portfolio of newconstruction apartment units in one of the nations top markets. The Sponsors are seeking to form a joint venture

for the Portfolio with a qualified institutional investor(s).

RARE OPPORTUNITY TO INVEST IN AN 1,100 UNIT TROPHY GOLD COAST APARTMENT PORTFOLIO: With comparable

Gold Coast multifamily assets rarely trading, the Jersey City Portfolio represents a unique opportunity to inves

in the highly sought after Jersey City apartment market. The Portfolio includes: 18 Park, with 422 units currently

under construction with initial TCO expected in February 2014, and Grand & Grove, a fully entitled develop-

ment with 680 units scheduled for a June 2014 construction start.

PROVEN, INSTITUTIONAL QUALITY SPONSOR

SHIP: Sponsors KRE Group and Ironstate

have established a strong track record fo

excellence in large-scale multifamily de

velopments in the New Jersey Gold Coast

market. KRE has over 30 years of experi

ence in New Jersey real estate and cur-

rently owns over 10,000 apartments o

which approximately 5,000 are managed

out of their headquarters in New Jersey

Additionally, KRE has over 5,000 apart-

ments in different stages of approval and

design and 1,000 units currently unde

construction in NY, NJ, and PA. Ironstate

has developed over 10,000 units in the re

gion and is one of Hudson Countys

largest residential owners. On a com

bined basis, KRE and Ironstates track

record and capabilities are unmatched

in the region and provide proven, institu-

tional quality sponsorship.

JERSEY CITY APARTMENT PORTFOLIO SUMMARY

18 PARK GRAND & GROVE TOTAL

Multifamily Units 422 680 1,102

Multifamily Rentable Square Feet 309,439 440,795 750,234

Retail Rentable Square Feet 10,549 5,995 16,554

Parking 230 spaces 340 spaces 570 spaces


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INVESTMENT HIGHLIGHTS (Continued)

EXCEPTIONAL NEW YORK METRO LOCATION: With extremely easy

access to Manhattan, the Jersey City market has emerged over

the last 15 years as one of the most vibrant residential and com-

mercial districts in the country. Residents are drawn to the area

due to the more affordable housing options relative to the Man-

hattan market as well as the extremely convenient transporta-

tion options for commuters.

HIGHLY FAVORABLE MARKET FUNDAMENTALS: With a strong em-

ployment base located in Manhattan and downtown Jersey

City alongside a wealthy demographic renter profile, the local

market exhibits some of the strongest fundamentals in the na-

tion. Further, the New York Metros sustained housing shortage

will continue to suppress Jersey Citys historically low vacancy

rates while creating additional support for strong rent growth

and absorption.

TOP QUALITY DESIGN AND AMENITIES: The Properties were de-

signed by the internationally recognized architectural and plan-

ning firms HLW International, Hollwich Kushner (HWKN), and

Minno & Wasko. Upon completion, the Properties will feature a full array of luxury amenities, comparable

to the highest end rental properties in New Jerseys Gold Coast region, including a swimming pool, fitness

center, residents lounge, childrens play area, and business center. All apartment units will feature hard

wood flooring, quartz or stone countertops, and stainless steel appliance packages.

OUTSTANDING DEMOGRAPHICS: With

over 70% of total households already

occupied by renters and an esti

mated 30,000 new units required to

meet demand in NYC/Jersey City ove

the next four years, the outlook for the

Jersey City rental market is incredibly

strong. The Jersey City market is fur

ther bolstered by young members o

Gen-Y moving to the New York Metro

who are priced out of Manhattan

rentals and seek luxury apartments in

transportation-friendly neighboring

markets as an affordable alternative.

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JEFFREY W. BAKER GRAHAM M. HOBBS BENJAMIN J. KANNEExecutive Managing Director Senior Vice President Associate

[email protected] [email protected] [email protected]

212.328.3941 212.328.3952 212.328.3963

599 Lexington Avenue, 36th Floor, New York, NY 10022 T: 212.328.2800 F: 212.328.2828

18 Park Avenue


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CONFIDENTIALITYAGREEMENT

THE JERSEY CITY PORTFOLIO,NEW JERSEY

Savills LLC (Savills) has been retained by Grand LHN I Urban Renewal LLC, Grand LHN III Urban Renewal

LLC and Grand LHN IV Urban Renewal LLC (collectively the Company), as its exclusive financial advisor to

arrange joint venture equity and debt capital for the recapitalization of 18 Park Avenue, a 422 unit apartmentbuilding currently under construction, and Grand & Grove, a 680 unit multifamily development, located in Jersey

City, New Jersey (the Project orthe Property).

Savills and the Company have and are prepared to make available to the Undersigned certain information concerning

the Project and the Company, subject to the terms and conditions set forth below and any limiting conditions set forth

in the Confidential Information (as hereinafter defined). As used in this Agreement, Confidential Information

means (i) any information regarding the Company or the Project set forth in the Confidential Information

Memorandum, (ii) negotiations or discussions with Savills or the Company regarding the Project, (iii) that the

Company may be considering the Project, and (iv) and such other information that Savills or the Company delivers to

the Undersigned regarding the Company or the Project. The term Confidential Information will not, however,

include information which is or becomes publicly available other than as a result of a disclosure by the Undersigned

(as hereinafter defined), or any affiliate or representative of the Undersigned, or any third party, such as a law,

accounting, engineering or environmental review firm, engaged by the Undersigned to assist the Undersigned in its

consideration and underwriting of the Project or consummation of a transaction involving the Project (aTransaction).

All Confidential Information provided to the Undersigned by or through Savills or the Company is subject to the

following conditions:

1. All Confidential Information shall continue to be the property of the Company.2. The Confidential Information (a) will be used solely in connection with the Undersigneds evaluation of

the Project or the consummation of a Transaction and for no other reason, and (b) may not be otherwise

copied or duplicated. The Confidential Information must be returned to Savills or at the Companys

option destroyed immediately upon request, except that the Undersigned may retain a copy in its files if

regulatory requirements require it to do so.

3. The Confidential Information may only be disclosed to the Undersigneds officers, employees, legalcounsel, accountants, and other third party firms (such as engineering and environmental review firms)

engaged by the Undersigned in connection with the evaluation of the Project or consummation of aTransaction (Related Parties), and only (a) for the purpose of assisting in the evaluation of the Project

or consummation of a Transaction, and (b) upon such Related Parties being instructed by the

Undersigned to keep such information confidential in accordance with the terms of this agreement. All

Confidential Information will be kept strictly confidential and the Undersigned will not (except as

required by applicable law, regulation or legal process), without the Companys prior written consent,

disclose any Confidential Information in any manner except as set forth in this Agreement.

4. Notwithstanding the foregoing, if the Undersigned or any of the Related Parties are required to discloseany of the Confidential Information in any judicial, administrative or other similar process, the

Undersigned or its Related Parties may disclose such information to the requesting party, provided it or

they give the Company prompt written notice of such request and disclosure. The Undersigned will

provide the Company with prompt written notice of each such request so that the Company may seek a

protective order or other appropriate remedy and/or waiver in compliance with the provisions of this

Confidentiality Agreement.

5. Neither the Undersigned nor the Related Parties will, without the prior written approval of theCompany, contact any of the Companys employees, any employees of any firm engaged by theCompany in connection with the Project, any tenants of the Companys existing properties, or any

governmental officials (including officials of all state, local and federal bodies) regarding the Project.

6. The Undersigned understands and acknowledges that (a) the Confidential Information is being providedfor information purposes only, (b) the information contained therein has not been independently

verified by Savills, and (c) neither the Company nor Savills make any representation, warranty or

guaranty as to the accuracy or completeness of the Confidential Information.

7. The Undersigned understands and acknowledges that the Confidential Information contains onlyselected information and does not purport to be all-inclusive or contain all information that may be


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Confidentiality Agreement

The Jersey City Portfolio

Page 2required by a prospective investor considering a Transaction, and is not intended as a substitute for

independent due diligence and analysis by the Undersigned.

8. The Undersigned specifically agrees to rely on its own due diligence, including without limitation itsown due diligence investigations of the Company and of all physical, environmental, market and

financial matters pertaining to the Project, in connection with any decision by the Undersigned to

consummate a Transaction.9. The Undersigned acknowledges that neither the Company nor Savills has any responsibility to update

the Confidential Information.

10. The Undersigned represents that it is a principal and will not look to the Company or Savills for anyfee, commission or other compensation relating to the Project. The Undersigned also hereby

acknowledges that it has not dealt with any broker, other than Savills, regarding a Transaction.

11. The Undersigned acknowledges that the Project is subject to withdrawal from the market, priorplacement or rejection of any proposal for any reason whatsoever, or for no reason, without notice.

12. This agreement shall terminate one (1) year from the date hereof except as to written claims by theCompany against the Undersigned prior thereto.

13. This agreement shall be governed by, and construed in accordance with, the laws of the State of NewJersey.

14. The term Undersigned shall include (a) the individual named below, (b) the entity named below, (c)any entity which such named entity owns or controls, (d) any entity that owns or controls the entity

named below, and (e) any entity that is under common ownership or control with the entity namedbelow.

Please indicate your acceptance of these terms by signing and returning one original copy of this agreement to

Savills LLC, Attention: Ben Kanne, 599 Lexington Avenue, 36th

Floor, New York, New York 10022; Phone

(212) 328-2800; Fax (212) 328-2828. Faxed or scanned copies are binding. Email scanned copies to:

[email protected].

ACCEPTED AND AGREED TO

THIS__________DAY OF ________________, 2013

Signature:____________________________________

Name (Printed):_______________________________

Title:_______________________________________

Company:___________________________________

Address:_____________________________________

_____________________________________

Phone Number:________________________________

Fax Number:__________________________________

E-mail Address:________________________________
mailto:[email protected]:[email protected]:[email protected]

jersey city portfolio - teaser and ca

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