CBRE Supplies $36M Freddie Mac Loan for New Jersey Apartments

MAS Capital has landed $35.5 million of Freddie Mac-backed debt for a newly acquired multifamily asset in northern New Jersey, Commercial Observer has learned.

CBRE originated the loan through the Freddie Mac lease-up program for 158-unit The Essex in Belleville, N.J., about four miles north of Newark.

CBRE facilitated the transaction with a team consisting of Judah Hammer, Jeff Feldman and Jack Hayes. 

“We began to engage with our client regarding permanent financing when the property was still 50 percent occupied to hit the road running and secure the best terms possible,” Hammer said in a statement. “We worked closely with Freddie Mac in obtaining a seven-year loan with the benefit of four years interest-only with an excellent fixed rate of 4.92 percent.”

In addition to the loan, MAS will also benefit from a “borrow-up” provision enabling it to access cash flow once leasing reaches stabilization and access additional loan proceeds at pricing levels of the first mortgage within the first 24 months of origination. 

Located at 78-102 Washington Avenue 15 miles west of Midtown Manhattan, the four-story property also features ground-floor retail space. Community amenities include a fitness center, a yoga room, grilling stations, a game room, coworking pods and indoor parking with electric vehicle charging stations. 

Officials at MAS Capital did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.