New York Community Bank lent $98 million to Harbor Group International and Azure Partners to finance their joint purchase of a 704-unit apartment community in Plainsboro, N.J., Commercial Observer can first report.
The New York-based partners acquired the garden-style multifamily property, The Crest at Princeton Meadows, along with two other apartment complexes in New Jersey and Maryland for $300 million, a person with knowledge of the deal confirmed.
The seven-year acquisition loan, arranged by Meridian Capital Group, carries a fixed interest rate of 3.75 percent and a five-year extension option, according to the broker.
Meridian Senior Managing Director Abe Hirsch, Managing Directors Moshe Majeski and Zev Karpel and Vice President Akiva Friend worked on the debt deal.
“We are excited to partner with Jordan Slone and his team at Harbor Group International in acquiring this great asset in a severely supply constrained sub-market,” said Azure’s chief executive officer, Arthur Rosenberg, in prepared remarks provided to CO.
The Crest at Princeton Meadows, located at 3217 Raven Crest Drive, contains 37 three-story buildings with 704 units spanning nearly 41 acres, as well as an outdoor swimming pool, tennis courts, playground and putting green.
The residential community, which has undergone capital improvements in the past three years, sits adjacent to the in Plainsboro’s Meadows at Middlesex Golf Course. The property is located within six miles of Princeton University’s main campus and the Princeton Junction train station.
“Meridian leveraged our unique relationship with the lender and the top-tier quality of the sponsorship and property to achieve a 78 percent loan-to-value ratio and two years of interest-only payments,” Mr. Hirsch said.