BWE, a national commercial and multifamily mortgage banking company, announced today that it has successfully secured a $130,000,000 loan to provide first mortgage financing for a newly constructed 520-unit apartment and townhome community in Northern New Jersey.
Steve Perricone, senior vice president in BWE’s Philadelphia office, originated the financing from a life company on behalf of the borrower. The loan features a 9-year, fixed-rate term at a 5.22% interest rate. The low rate was secured through a rate lock eight months prior to deal closing, which helped the borrower to lower exposure while still receiving strong proceeds.
“For a large transaction like this, an essential goal for our client was to limit interest rate risk while still getting the pricing and proceeds they needed. By working with a life insurance lender who was interested in getting into the pre-stabilized, new construction lending market, we were able to lock in the interest rate during a downdraft in the market and secure a strong deal before the property reached stabilization,” said Perricone. “At BWE, our goal is to work with our clients to identify their key priorities and help find the financing that will allow them to execute on their long-term business plans.”
Located not far from the Rutgers University campus, the property was developed in two phases. The first phase was completed in early 2024 and is currently 99% leased, while the second phase is nearing completion and is the process of lease up. Amenities on the property include a clubhouse with an on-site leasing office, fitness center, resident lounge, business center, outdoor in-ground swimming pool, BBQ/firepit area, and two dog parks. The property will also include numerous parks, plazas, and open spaces. The community also includes a small percentage of complimentary retail space, and 104 affordable units meet the COAH affordable housing requirements.