Capital One has provided a $70 million construction loan to The Rockefeller Group for the development of AVE Florham Park, a 256-unit, long-term stay community, Commercial Observer has learned.
New Jersey-based Deerwood Real Estate Capital brokered the financing, which carries a three-year term with two one-year extension options. Capital One syndicated the mortgage, carrying 65 percent on its balance sheet and giving the rest to New Jersey-based Provident Bank, according to a source with close knowledge of the deal. (A representative from Provident did not reply to a request for comment.)
Rockefeller Group is developing the 450,000-square-foot building with its joint-venture partner and residential developer Korman Communities. The firms are catering to extended-stay business professionals and individuals who are relocating.
“It’s always a pleasure to work with sophisticated developers such as Korman Communities and The Rockefeller Group, particularly on a high-profile project such as AVE Florham Park,” said Bill Booth, a senior vice president at Capital One Bank who led the transaction. “AVE Florham Park is ideally situated in a vibrant and growing community that includes corporate headquarters, healthcare facilities and even the training complex for the New York Jets. We look forward to seeing the project take off.”
Construction on the site started in July 2015 and the property is located within the Rockefeller Group’s 268-acre master-planned community, The Green at Florham Park, in Florham Park, N.J. Tenants at The Green include the New York Jets, BASF North American Headquarters and Summit Medical Center.
“This financing is reflective of The Rockefeller Group’s strong corporate balance sheet and renowned expertise in New Jersey, both of which allowed our team to effectively negotiate the terms of the loan,” Sam Pallotta, a vice president and the treasurer in Rockefeller Group’s internal treasury department, said in prepared remarks. “Those factors, among others, led to investor confidence and ultimately resulted in the establishment of a new relationship between The Rockefeller Group and Capital One.”
Once completed in 2017, AVE will have both furnished and unfurnished units, as well as 40,000 square feet in outdoor amenities, including courtyards, chess stations, a pool, a sundeck, a ping-pong table, a bocce ball court, a movie screen, fire pits and a kitchen with a barbecue area. There will also be 24,000 square feet of indoor amenity space, including a café, an indoor media theater, conference suites, a fitness center and a spa.
“AVE Florham Park is unlike anything else that is currently available in the Morris County area,” said Clark Machemer, a senior vice president and the regional development officer for Rockefeller Group’s New Jersey/Pennsylvania office. “The many unique features of the AVE properties, including the flexible-stay options offered, are what attracted us to this project, and we look forward to delivering AVE Florham Park to the market next year.”