NEWARK-The non-performing loan on a 317-unit luxury rental tower at 1180 Raymond Blvd., Newark’s only high-rise apartment building downtown, has been acquired by KBS Strategic Opportunity REIT for the discounted price of $35 million.
The first mortgage on the distinctive 37-story multifamily property was for $54.5 million. “KBS Strategic Opportunity REIT does not expect to receive repayment of the entire principal balance,” says the company in a brief statement.
Eleven80, as the building is known, was opened with fanfare in 2006 by Cogswell Realty Co., which had transformed a historic former office tower to become the city’s first new luxury housing project in 40 years
Only two years later, though, in the thick of national economic woes, Cogswell effectively started pulling out of the Newark redevelopment arena, and put most of its properties there up for sale. The mortgage loan from Bank of America was called on Cogswell’s signature Newark office project at 744 Broad St., but Cogswell has fought to maintain control by renegotiating terms.
Eleven80, originally constructed in 1929, offers studio, one and two-bedroom units with 12-foot ceilings, granite countertops, marble bathrooms and other high-end finishes. It features amenities such as a health club, half-court basketball court, four-lane bowling alley, multimedia center, and shuttle services to Newark’s train stations.
Mayor Cory Booker’s administration has continued to push hard for residential development in its downtown area. A proposed residential tower near the New Jersey Performing Arts Center downtown has not yet found financing, but a smattering of smaller commercial real estate projects have been completed. Last month, ground was broken for the mixed-use Teachers Village, a $150 million that will house students and others in the area around Rutgers University’s Newark campus.
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