Madison Realty Capital Lends $258M on NJ Multifamily Development Portfolio
By Cathy Cunningham October 4, 2018 1:40 pmreprints
Madison Realty Capital (MRC) has closed a $258 million loan for an 1161-unit multifamily development portfolio in New Jersey, Commercial Observer can first report.
The debt, provided to Jack Klugmann’s Accurate Builders and Developers of New Jersey, will finance the acquisition and construction of three transit-oriented projects in Bayonne, Raritan and Linden.
“MRC thrives on large, complex transactions like this portfolio and we’re excited to be involved,” Josh Zegen, the co-founder and managing principal of MRC told CO. “We’re financing three major transit-oriented development sites located in different towns, so clearly there are many moving parts, but our experienced team makes complicated deals easy for the borrower and allows them to focus on their core expertise of building. These are prime sites in communities with strong apartment demand based on demographics and transportation connections, and we believe they have great prospects for success.”
Meridian Capital Group’s Shaya Ackerman and Shaya Sonnenschein negotiated the financing.
Harbor Station South—located at the intersection of Goldsborough Drive and Port Terminal Boulevard in Bayonne, N.J—will consist of 651 units spread across two buildings. Its amenities will include a rooftop pool with unobstructed views of the New York City skyline and Bayonnne Golf Course.
The Crossroads at Raritan will sit close to the Raritan Train Station and feature 276 units—of which 20 will be affordable—and its amenities are set to include a bike-sharing program, a virtual yoga studio and a community room.
Details of the Linden project—currently under contract—have yet to be announced.
“Ultimately, we advised the client to move forward with Madison Realty Capital as they were able to provide a very attractive staged funding, and the flexibility required during construction, which is incredibly important with three properties under development at once. This is a testament to Madison Realty Capital’s experience both as a lender and developer,” Ackerman told CO. “We are excited and proud to work with the Accurate team as they expand into these exciting New Jersey markets by constructing fully-amenitized multifamily rental products that will set the standard for other developments in the area.”
Founded in 2008 by owner and CEO Jack Klugmann, Lakewood, N.J.-based Accurate has an extensive portfolio of New Jersey assets in various stages of development.
“As we expand deeper into New Jersey, it was important to find a lender who truly understands our growth goals and could fully support these developments,” Klugmann said. “Meridian did an excellent job of sourcing a variety of financing options and then facilitating a smooth closing with the team at Madison Realty Capital.”
MRC has been actively lending on development projects in and around New York City. Recent financings include the $100 million upsizing of a construction loan on a seven-building Bedford-Stuyvesant condo complex and a $297 million construction loan for Fortis Property Group‘s River Park—a mixed-use project located at the former Long Island College Hospital site in the Cobble Hill neighborhood of Brooklyn.