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Prism Capital Partners has secured $53.9 million of takeout construction financing for its redevelopment of a former New Jersey industrial facility into a mixed-use multifamily development, Commercial Observer has learned.
New York Life Real Estate Investors supplied the seven-year, fixed-rate loan on Prism’s 252-unit The Nell project in Dunellen, N.J. The Nell opened last year.
The deal retires a previous $52 million construction loan from Valley National Bank with additional proceeds for the transit-oriented development at a site that previously housed the 400,000-square-foot Art Color industrial building.
“The opportunity here was to lock in the rate on takeout financing while the property was still in lease-up,” Eugene Diaz, principal partner at Prism, said in a statement.
Diaz noted that the original construction loan from Valley was $46 million before it increased by $6 million due to increases in rents and the property’s value.
Keybank (KEY)’s Rodney Shenman and Greg Halvorson arranged the takeout construction loan transaction.
The Nell is at 100 South Washington Avenue across from the Dunellen New Jersey Transit train station. The multifamily portion of the property features one- and two-bedroom units along with 130 for-sale townhomes developed by K. Hovnanian Homes.
Tenant amenities include a fitness center, yoga room and swimming pool.
The Nell development also includes a 9,300-square-foot free-standing retail building leased to Blue Foundry Bank and Kessler Rehabilitation Center, and there’s space to be leased out that can be utilized for a coffeehouse or convenience store, according to Prism.
Officials at New York Life did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
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