Skylight Real Estate Partners Makes Market Debut With NJ Multifamily Acquisition
PGIM provided $34.5 million in acquisition debt for the purchase
By Cathy Cunningham November 22, 2021 9:43 amreprints
Skylight Real Estate Partners has officially closed its first deal, Commercial Observer has learned.
The firm — led by industry veterans Bennat Berger, Gavin Evans, Benjamin Joseph and Andrew Miller — has acquired Infinity Edgewater, a 100-unit mixed-use property in Edgewater, N.J., in a joint venture with PCCP.
“We are thrilled to complete our first investment as Skylight Real Estate Partners with the purchase of this premium apartment community,” Miller said, referring to Edgewater as an extremely desirable and high-barrier-to-entry sub-market. “This acquisition directly aligns with our core investment thesis, which focuses on assets in supply-constrained markets that allow our team’s diverse experience to add value through enhancements, or development executions.”
The five-story multifamily asset, at 340 Old River Road, also includes 5,500 square feet of retail space and two levels of subgrade parking. Building amenities include a fitness center, a landscaped gazebo and garden and a resident lounge.
While Skylight officials declined to comment on the acquisition price, sources close to the deal said it was just north of $50 million.
The transit-friendly building sits close to the Port Imperial/Weehawken ferry —with a direct route to Hudson Yards across the Hudson River —and across the street from a New Jersey Transit bus stop.
“Infinity Edgewater presented the opportunity to acquire a steel framed, condo-quality property at an attractive yield profile and meaningful discount-to-replacement cost,” Brian Haber, vice president at PCCP, said. “Edgewater has a mature retail profile, strong schools, and offers residents high-quality product and an efficient commute to Manhattan’s West Side or primary Northern New Jersey employment nodes.”
PGIM provided a $34.5 million, five-year, floating rate loan for the acquisition. JLL’s Michael Klein and Matthew Pizzolato arranged the financing on behalf of Skylight and PCCP, while JLL’S Jose Cruz, Steve Simonelli, Michel Oliver and J.B. Bruno represented the seller in the deal, Waterton Associates.
“We were thrilled to continue our relationship with Skylight Real Estate Partners and advise their new partnership with PCCP on the acquisition financing,” Pizzolato said. “This deal received a tremendous amount of interest from the lending community and PGIM ultimately stepped up to offer extremely attractive terms.”
CO first reported the news of Skylight’s formation in March. Its four co-founders — who previously held top positions at Related Companies, Columbia Property Trust and Novel Property Ventures — teamed up to focus on value-add, development and distressed opportunities in the multifamily and office sectors of the New York City Metro, Washington, D.C., and Florida markets.
Cathy Cunningham can be reached at firstname.lastname@example.org.