NYC-Area Luxury Asset Lands $50M Refi

Proceeds retire a $38 million construction loan.

Walnut Hill

Walnut Hill came online earlier this year. Image courtesy of Yardi Matrix

Garden Communities has secured $49.5 million for the refinancing of Walnut Hill, a 177-unit luxury multifamily community in Clark, N.J. Working on behalf of the borrower, JLL arranged the 10-year fixed-rate loan provided by Nationwide. Proceeds retire a $38 million construction loan originated by PNC Bank in 2021, according to Yardi Matrix data.

Completed earlier this year, the property comprises two buildings with one- and two-bedroom floorplans ranging from 942 to 1,964 square feet. Of the total, 28 residences are designated as affordable. Apartments feature in-unit washers and dryers, 9-foot ceilings and private balconies or patios, along with fireplaces in select layouts. Common-area amenities include a clubhouse, swimming pool, fitness center and resident lounge, as well as covered parking and EV charging stations.

Located at 35 Walnut Ave., in northern New Jersey, Walnut Hill is off Garden State Parkway and roughly 22 miles from New York. The property is some 12 miles from the Newark Liberty International Airport and Clark Commons Shopping Center is within walking distance.

Northeastern markets lead in rent growth

JLL Senior Managing Director Evan Pariser, Managing Director Matthew Pizzolato and Vice President Jackie Ferrer led the team which arranged the financing. Pariser was recently involved in securing a $42 million loan for a condominium development in Manhattan.

While average rents decrease in more and more metros, northeastern markets are leading in terms of growth, with New York registering 5.8 percent year-over-year increase as of October, and New Jersey clocking in at 4.1 percent, far above the national rate of 0.4 percent over the past 12 months, according to a recent Yardi Matrix national report. The average asking rent in the U.S. was $1,718 in October, a $3 drop from September.

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