NEWARK, NJ — While there has been some softening in multifamily developments throughout the US as more supply hits the market in Q4, Newark is experiencing a surge in sales, acquisitions and construction lending particularly within this sect or. Recently, Progress Capital Advisors Brad Domenico completed the financing of a re-positioned mixed used asset at 127 Halsey St., the intersection of Halsey St. and Raymond Ave., in the heart of the downtown Central Business District. The borrower, having previously acquired the property in 2016, completed gut renovations of the building in August of 2017 and sought to enter into a permanent mortgage.
Working with Sabal Financial, Domenico arranged a $5.965 million non-recourse loan with 24 months interest-only, representing a 75% loan to value. The loan is secured by the aforementioned property – a four story mixed-use building with five one-bedroom and 11 two-bedroom loft style apartments with three St. level retail units. Currently a Krauzer's convenient store and restaurant Harvest Table occupy the retail space.
The loan is structured on a 20 year term with an initial rate of 3.95% fixed for 7 years and 30 year amortization. The borrower can choose to pay off the loan early with a 5-5-4-4-3-2-1-1 declining pre-payment schedule with no penalty if the loan is satisfied in the last three months of the term.
In a second transaction, Domenico arranged $3.4 million non-recours e loan to acquire a multi-family asset in the suburban Weequahic neighborhood.
The loan is secured by a six-story building with 58 units including four studio, 27 one-bedroom and 17 two-bedroom apartments. At a purchase price of $4.5 million and with borrower equity of $1.2 million this loan represents a 75% loan to purchase. The term of the loan is 12 years at a rate of 3.625% fixed for 7 years and a declining pre-payment schedule.