Meridian Capital Group, America’s most active dealmaker, arranged $7.6 million in construction financing, which converts to an $8.2 million permanent loan, for a multifamily property in East Orange, NJ.
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 Street in East Orange, NJ, 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 Mr. 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.”
Founded in 1991, Meridian Capital Group, LLC is one of the nation's largest commercial real estate finance and advisory firms. Meridian is headquartered in New York with offices in New Jersey, Maryland, Illinois, Florida and California. Working with a broad array of capital providers, Meridian arranges financing for transactions ranging from $1 million to more than $500 million for multifamily, co-op, office, retail, hotel, mixed-use, industrial, healthcare, student housing, self-storage and construction properties. www.meridiancapital.com