MRC Provides $68M For New Jersey TOD
- Nov 12, 2018
A partnership of Accordia Realty Ventures and Eastone Equities has received a $67.5 million loan to acquire two adjacent sites in Harrison, N.J., and finish building a two-phase, 640-unit multifamily development.
Madison Realty Capital arranged the loan, which will allow the joint venture to finish construction of the 205-unit first phase of the project, which is currently topped off and nearly 60 percent complete.
“MRC’s internal development expertise helps us move quickly to serve borrower needs on the lending side,” Josh Zegen, MRC’s co-founder & managing principal, said, in a prepared statement. “In this case, we were able to rapidly assess and underwrite the deal in order to deliver on a time-of-the-essence closing schedule. The deal was done within three weeks from start to finish. We believe that combination of the strong Harrison multifamily market and the development team’s experience will make the project successful.”
The prior owner of both sites undertook substantial construction and site work before the acquisition, including the Phase one top-off, and completion of all the site preparation work and infrastructure for both phases.
According to Zegan, MRC was also interested in the risk mitigation associated with the amount of construction and site work that was already finished.
Located at 700 Frank E. Rodgers Blvd., the first phase is projected to be completed by spring of 2019. Both sites are situated along the Boulevard and are next to the PATH train station, which earlier this year underwent a $35 million renovation and expansion before reopening.
The city of Harrison is located along the much-traveled transit corridor between New York City and Newark, and this transportation access helped established the city as a popular residential area and development hot spot.
The development team includes general contractor Hollister, design architect NK Architects, interior designer Studio 1200, and leasing and marketing agent the Marketing Directors.
Recent New Jersey housing data revealed that multifamily housing has eclipsed both single- and two-family development in recent years, echoing demand in more densely populated areas.
Earlier this month, Madison Realty Capital’s plans for a 431-unit, 500,000-square-foot mixed-use development in Woodside, N.Y., took its next steps when the New York City Council approved rezoning for a two-building project that also features 129 affordable rental apartments, retail space and a new elementary school.