Meridian Secures Capital One Loan for New Jersey Multifamily Buy
By Damian Ghigliotty March 27, 2014 4:12 pm
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Meridian Capital Group arranged a $33.2 million acquisition loan on behalf of a partnership between Chicago-based multifamily investor and operator Waterton Associates and an Israeli insurance company for a newly built apartment complex in Edgewater, N.J.
The five-year loan on Infinity Apartments at 340-342 Old River Road carries a Libor-based floating rate and interest-only payments for the full term, Mortgage Observer has first learned. The lender is listed as Capital One (COF) in property records.
Waterton acquired the 100-unit apartment complex from its developer James Demetrakis for $48 million earlier this week at the same time as the loan closing. Waterton purchased the property “on behalf of its closed end, value-add fund and in conjunction with Clal US, a 49 percent co-investment partner,” according to a Meridian press release.
The partner is a wholly owned subsidiary of Israel-based Clal Insurance Enterprise Holdings, a publicly traded insurance company, pension fund manager and one of Israel’s largest financial institutions. The overseas company is building a $1 billion real estate portfolio in the U.S.
Infinity Apartments is the second multifamily property Waterton purchased this year. The apartment community contains a business center, resident meeting room and fitness center with sauna and steam room. The property also contains about 5,500 square feet of on-site retail space, a parking garage and two public parking lots.
Meridian Vice President Jacob Schmuckler, Managing Director Abe Hirsch and Senior Vice President Zev Karpel, all based in the brokerage company’s New York City headquarters, negotiated the transaction. The broker and borrower declined to name the lender.
“Waterton sought to close the acquisition loan commensurate with the completion of Infinity Apartments construction,” Mr. Schmuckler said. “In order to obtain permanent financing prior to lease-up, Meridian leveraged its significant relationship with the lender to tailor a flexible financing structure that accommodates the business plan.”
“Given the outstanding location of the property and the strength and experience of the sponsor, we were able to negotiate and close the loan on an expedited 45-day timeframe,” he added.
