Chetrit Group Lands $31M Redevelopment Loan for NJ Multifamily Tower
Thorofare Capital has provided a $30.8 million redevelopment loan to The Chetrit Group for 440 Elizabeth Avenue, a 25-story multifamily tower adjacent to Newark International Airport in Newark, N.J., Commercial Observer can first report.
The property, formerly known as Carmel Towers, was built in 1969 and has been vacant since 2012. It towers over the Weequahic neighborhood in Newark’s South Ward, built around the 311-acre Weequahic Park — the largest park in Essex County.
The Chetrit Group acquired the asset in 2015 and has fully demolished the interiors since then, repositioning the property to meet the pressing need for additional workforce housing in the area. Its unit sizes will cater to families seeking space, affordable rent and proximity to major job centers.
A gut rehab of the tower is currently underway, with renovations including new HVAC, elevators, electrical systems, plumbing and flooring.
“This redevelopment loan with The Chetrit Group will help increase the amount of quality workforce housing to the Tri-State market,” David Perlman, head of Thorofare’s New York office and lead originator on the deal, said. “We believe that the building’s location across from Essex County’s largest park and the building’s high concentration of balconies, provide crucial outdoor space, something urbanites desire now post-pandemic. Further, we are very happy to be starting to work with The Chetrit Group.”
Residents at 440 Elizabeth Avenue will have unobstructed views of the New York City and Newark skylines, and those views are protected from future developments by building height restrictions implemented by the nearby airport. The new and improved property will also include a gym, a bike room, a laundry room and an indoor parking garage.
“This financing provides our portfolio with multifamily in a highly dense submarket that is lacking newly developed or renovated product at this rental price point,” Kevin Miller, Thorofare’s CEO, said. “We believe that the property will be top of class compared to the comps and overachieve the submarket’s occupancy levels that have historically been in the mid 90-percent range.”
It’s been a busy second quarter for Thorofare. Only last week, it provided a $19 million in financing for two parking garages in downtown Philly, and earlier this month it closed a $14.3 million bridge loan for 251 Flagler Street in Miami to allow a clear path for the property’s sale.
Officials at The Chetrit Group could not immediately be reached for comment.