A 170-year-old former factory complex in the heart of Paterson will continue to transform, thanks to a $12.5 million loan closed by nationwide private lenders, Silver Arch Capital Partners and Procida Funding & Advisors, LLC.
"We came through for the borrower, Great Falls Industrial Park, Inc., and we are happy to help finance this key component of the ongoing cultural and economic revival of Paterson," says William 'Billy' Procida, president and CEO of Englewood Cliffs-based Procida.
Great Falls will use the loan proceeds to pay off debt and make capital upgrades.
"The borrowers came to us after other lenders promised a closing that never happened," said Jeffrey Wolfer, President and CEO of Silver Arch Capital Partners of Hackensack, adding that the collateral also included a three-building, 106,000-square-foot property located at 468 Totowa Ave., Paterson.
Sandwiched between Route 80 and the Passaic River, the 21-building, 4.781-acre Art Factory property is the former home of the American Hemp Company. Located at 60-70 Spruce Street in Paterson'sGreat Falls historic district, around 90 filmmakers, photographers, and many other creative professionals call Art Factory Studios home.
At Art Factory Studios, carpenters, painters and metalworkers produce their crafts side-by-side in open and private studio spaces complete with high, lofty ceilings, large antique windows and original brick walls. Cobbled courtyards crop up between the buildings, providing a breathtaking backdrop for photography and videography.
"Art Factory Studios isn't a cut-and-dry office park," adds Procida. "It is such an interesting property with so many different purposes which can be too complicated for conventional lenders to even think about.
"Located deep in the heart of an old urban center, it was clear that Art Factory Studios fits a unique role in the Paterson community, with many pathways for success," he says.
Redevelopment efforts include retail stores, exhibition and event spaces, light industrial spaces, more office and studio space.
"Not only is Art Factory Studios already an in-demand studio space and venue, but the planned expansions will further solidify the space's role in the continued revival of historic Paterson," Wolfer said.
Originally built in 1844 with additions constructed in 1916, Art Factory Studios has acquired a reputation within filmmaking circles in recent years for its Old New York-like resemblance and intricate antique details. Dubbed "Hollywood East," production companies from around the world have booked Art Factory Studios for movie and commercial shoots.
In addition to the myriad creative endeavors underway at Art Factory Studios, a portion of the complex is regularly rented out for weddings and corporate events, with close to 75 events scheduled for the next year.
"This century-plus-old complex is the perfect backdrop for so many exciting creative endeavors, with so much room to grow," said Procida.
