Madison Realty Capital Lends $68M on NJ Multifamily Development

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Accordia Realty Ventures and Eastone Equities have landed a $67.5 million loan from Madison Realty Capital (MRC) for a transit-oriented multifamily project in Harrison, N.J., Commercial Observer can first report.

SEE ALSO: Madison Realty Capital Lends $258M on NJ Multifamily Development Portfolio

MRC’s financing will be used to acquire and complete an existing 205-unit multifamily development and also purchase a neighboring site that is approved for a further 435 multifamily units.

The two sites sit along Frank E. Rodgers Boulevard in Harrison, next to the recently reopened PATH train station, which recently underwent a $35 million renovation.

The sites’ previous owner undertook and completed all site preparation work and infrastructure for both phases prior to Accordia and Eastone’s acquisition. The 205-unit first phase of the project is currently 60 percent complete and expected to come online by Spring 2019.  

“MRC’s internal development expertise helps us move quickly to serve borrower needs on the lending side,” Josh Zegen, a co-founder and managing principal of MRC, said in prepared remarks.  “In this case we were able to rapidly assess and underwrite the deal in order to deliver on a time-of-the-essence closing schedule.”

The transaction was completed within only three weeks from start to finish.

“We believe that combination of the strong Harrison multifamily market and the development team’s experience will make the project successful,” Zegen said. “We also like the risk mitigation associated with the amount of construction and site work that is already done.”

MRC has been actively lending in transit-oriented developments in the Garden State. Only last month, it provided a $258 million acquisition/construction loan to Accurate Builders and Developers of New Jersey for a 1161-unit transit-oriented multifamily portfolio spread across Bayonne, Raritan and Linden.