Berkadia Funds NJ Mixed-Use Development With $92M in CMBS Debt
Berkadia Commercial Mortgage has funded a $92.4 million Freddie Mac CMBS loan to refinance The View at Edgewater Harbor—a northern New Jersey apartment and retail complex—according to Kroll Bond Rating Agency, which rated the securitization.
Greenwich, Conn.-based National Resources, the company that owns The View, will pay a fixed interest rate of 4.23 percent on the 10-year mortgage, which starts with a seven-year interest-only period. The loan refinances part of $93.5 million in outstanding debt, including the proceeds from a previous Freddie Mac securitization. The loan will headline the forthcoming FREMF 2018-K80 CMBS transaction as the deal’s largest financing.
The 4.4-acre complex includes three six-story apartment buildings clustered at 1-4 Main Street in Edgewater, N.J., directly across the Hudson River from Manhattan’s West 96th Street. Its residential portion comprises 162 rental units built in the early 2010s, while the 61,000-square-foot retail component is fully leased to 20 tenants including an upscale restaurant, a HomeGoods discount furniture store and a handful of fast-food chains. Commuters can take shuttle busses to a pair of ferry docks where they can board boats for the short trip to Manhattan’s west side.
The property took in $6.7 million in net operating income last year, up 4 percent from 2016. A 750-square-foot 1-bedroom apartment rents for $2,400, according to Trulia, while 1,200-square-foot two-bedroom apartments top out at $3,350.
Only 2.5 percent of the apartments were vacant in April, the time of the tally that KBRA used to evaluate the property. That’s in line with recent findings from Marcus & Millichap, which described, in research published last month, a taut multifamily market in Northern New Jersey that is drawing residential tenants for its proximity to Manhattan and affordable rents. Even though the brokerage said that nearly 10,000 new apartments would come online in 2018, it found that vacancies were down almost 3 percent since the end of last summer.
Representatives for Berkadia did not respond to an email, and an onsite employee at The View said that people authorized to speak to the media were not available.