Capital One closes $200 million debt package for 1,300-unit portfolio in New Jersey, New York – Real Estate NJ

By Joshua Burd

Capital One has provided $200 million in financing in connection with four apartment properties spanning more than 1,300 units in New Jersey and New York, the lender announced.

Arranged by Meridian Capital Group, the transactions include so-called balance sheet loans to refinance Ramblewood Apartments in Mount Laurel and Mid Island Apartments in Bayshore, New York, according to a news release. Both are fixed-rate loans with full-term interest-only payments.

Agency transactions included a seven-year fixed-rate Freddie Mac loan with full-term interest-only payments to refinance Eagle Rock Apartments in Freehold, Capital One said. The team also arranged a Freddie Mac supplemental loan for Vista Point Apartments in Wappingers Falls, New York.

A Capital One team led by commercial real estate senior vice presidents Todd Phillips and Michael Maidhof supplied the financing to the sponsor, Eagle Rock, while Meridian Senior Managing Director Abe Hirsch and Managing Director Zev Karpel arranged the deals.

“These transactions exemplify how Capital One can provide a suite of financing options for our clients, including on-balance sheet executions and agency financing, in addition to the depository and treasury management services we offer,” Phillips said. “Meridian and Capital One’s long-standing relationship with Eagle Rock — and their designation as a Freddie Mac Select Sponsor — enabled us to effectively align our financing solutions with their strategy.”

Rishi Gupta, a partner at Eagle Rock, added: “These properties provide vital housing inventory to communities in the Northeast. Capital One and Meridian were able to close these transactions in a challenging and volatile environment, which allows us to continue to invest in the properties and achieve both our property and long-term business goals.”

In announcing the deals, Capital One noted that it provides multiple financing solutions for multifamily investors, including Fannie Mae, Freddie Mac and Federal Housing Administration programs nationwide. The team also has access to balance sheet financing options as a top 10 U.S. commercial bank.

“Meridian leveraged our strong lender relationships and deep market knowledge to arrange agency financing and secure competitive fixed rates for Eagle Rock,” Hirsch said. “This included locking in competitive below market interest rates for both the Ramblewood and Mid-Island properties.”