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Housing authority approves Nokia site ownership change, sets construction timeline and financing terms
Summary
The New Brunswick Housing Authority voted to approve an ownership change and modified completion schedule for the Nokia H2 redevelopment project, accepting SJP New Brunswick LLC and a Morgan Stanley real estate investment trust as new principal owners and recording a $526 million total project cost and staged certificate-of-completion plan.
The New Brunswick Housing Authority on April 1 approved a change in the redeveloper ownership for the Nokia H2 project and authorized a two-stage certificate-of-completion and a phased construction timetable.
Counsel John Hoffman told the board the redeveloper interest will be transferred so that SJP New Brunswick LLC and a Morgan Stanley real estate investment trust will be the controlling parties. Hoffman said the authority will permit the developer to separate the certificate of completion into one certificate for the core-and-shell work and a later certificate for tenant improvements.
Hoffman described the project budget and financing as presented to the authority: a total project cost of $526,000,000; contributions toward the base building and tenant fit-out from the lab tenant and partner capital; landlord equity commitments; and a PNC construction loan to make up the remainder. The board was told the parties requested 36 months to complete the core and shell and an additional 24 months to finish tenant improvements.
Board members asked procedural and technical questions about sequencing and power needs. A developer representative, identified in the meeting as Mr. Liebling, said the project team was targeting a financial closing in May and expected a near-term groundbreaking.
The authority passed the resolution by roll call vote. Chairperson Wright, Commissioner Blevins, Commissioner Medina Hernandez, Commissioner Georgiani and Commissioner Dunlap voted yes. There were no recorded no votes, abstentions or recusals.
The resolution authorizes the assignment of redeveloper interest, allows staged certificates of completion for the core/shell and tenant-improvement phases, and documents the financing terms submitted to the authority for review.
The authority staff said they will file the executed resolution and the developer's financing materials with the project file and track the two-stage certificate schedule during construction.
Board staff and counsel indicated they will bring back any follow-up items to a future meeting if financing or schedule items materially change.
