East Orange, NJ — Meridian Capital Group arranged $7.6 million in construction financing, which converts to an $8.2 million permanent loan, for a multifamily property in East Orange.
The 18-month construction loan, provided by a balance sheet lender, features a prime-based floating rate and interest-only payments. At stabilization, the financing converts to a five-year permanent loan in the amount of $8.2 million. Meridian senior managing director, Israel Schubert, senior vice president, Emil DePasquale, and vice president, Nathan Baldinger, negotiated the financing.
Located at 51 North Walnut St. in East Orange, the property will be five stories, consist of 58 units and will enjoy direct access to an array of restaurants, shopping centers, and schools. East Orange is easily accessible via New Jersey Transit at both the Brick Church Station and East Orange Station and is just 20 minutes from midtown Manhattan by car.
“In a time where construction lending is becoming more and more conservative and lenders are tightening their underwriting guidelines, we were able to negotiate a construction loan that maximized the loan proceeds at 90% of the total project cost,” said Depasquale. “Additionally, the deal was structured with a permanent loan conversion at the time of stabilization that will allow the borrower to recapture their equity up to 100% of the total project cost.”