Meridian Capital Group has negotiated $50 million in construction financing on behalf of developer SAMTD Woodbridge for The Grande at Metro Park—a luxury multifamily development in Iselin, N.J., Commercial Observer can first report.
TD Bank and Oak Ridge, N.J.-based Lakeland Bank provided the 36-month, limited-recourse loan, sources familiar with the transaction told CO, which features a LIBOR-based floating rate and full-term interest-only payments with two 12-month extension options. TD Bank contributed $35 million, while Lakeland Bank contributed $15 million, sources said.
When complete, The Grande at Metro Park will consist of 232 units across three, five-story buildings at 3 Ronson Road in Iselin. The development will also include 8,200 square feet of retail space. Property amenities will include an outdoor pool, a gym, a yoga room, a lounge, a juice bar, bike storage rooms, pet washing stations and a grilling area.
According to Patch, construction began in August and is expected to wrap in late 2018.
SAMTD Woodbridge is also planning a second phase of the project, which upon completion will bring the total units in the development to 355.
“This is a very important project that will allow residents of the community to live within close proximity to public transportation, major highways and businesses,” Thomas Ponticelli, a vice president in TD Bank’s commercial real estate group told CO. “Multifamily buildings of this nature are very limited in this area. The Grande will meet the needs of the growing population of middle and upper middle income residents within close proximity to the Metro Park train station.”
Meridian’s Emil DePasquale arranged the financing.
“In a market where construction lending has become more challenging to obtain, Meridian was able to effectively advocate for our client and negotiate a favorable terms including limited recourse and a flexible prepayment penalty,” DePasquale said, in prepared remarks. “The most important achievement in this transaction was [our] ability to syndicate the loan by identifying a participant lender which will also provide for an expanded relationship with the borrower in the future.”
Officials at Lakeland Bank did not respond to a request for comment.