NJ Development Gets $52M
- Sep 18, 2018
Waypoint Residential has received nearly $52 million in construction financing to redevelop 435 Main St., an apartment community in Hackensack, N.J., into 235 Class A units.
Cushman & Wakefield’s Equity, Debt, & Structured Finance (EDSF) group facilitated the loan, which was sourced and executed through Citizens Bank.
“There was strong interest from a bunch of local and regional construction lenders,” Sri Vankayala, Cushman & Wakefield’s senior director, told MHN. “There was also interest from debt funds looking to provide higher leverage mezzanine/preferred equity loans.”
When completed, the four-story 435 Main St. will feature luxury units over two stories of parking. Amenities at the property will include a landscaped pool deck, a community lounge, a fitness center, an entertainment room and a pet facility.
Joining Vankayala on the Cushman & Wakefield EDSF team was John Alascio. Also, Brian Whitmer of the firm’s New Jersey capital markets team, helped in the transaction.
“Despite a tightening availability of construction financing, Cushman & Wakefield EDSF was successful in generating strong interest,” Vankayala said. “Hackensack’s compelling growth story proved attractive to lenders, who are still keen to lend on multifamily construction project—particularly for strong, proven sponsors, like Waypoint.”
The project also benefits from a 30-year tax abatement.
A Strong Transit-Oriented Neighborhood
Vankayala noted that local demand drivers include a nearby hospital, county offices and Fairleigh Dickinson University. The apartment community is also within walking distance to the Anderson Street New Jersey Transit rail station and numerous parks, restaurants, bars and retail.
“It provides easy access to Manhattan and the Jersey Gold Coast,” he said. “It also sits surrounded by affluent markets—Ridgewood, Paramus and Teaneck.”
According to Alascio, the property offered an enticing financing opportunity for lenders given its transit-oriented location, strong sponsorship and the chance to enter a re-emerging neighborhood going through increased renter demand.
“Citizens Bank understood the opportunity and provided attractive terms that matched Waypoint Residential’s business plan,” he said.
Waypoint Residential’s investment activity totals nearly $3 billion across a portfolio of more than 22,000 units.
In July, Waypoint Residential acquired 901 Place, a 158-unit student housing community in Charlotte, N.C. That deal represented the fifth asset purchased by the company as part of a $102 million five-property student housing portfolio. In April, the company purchased four multifamily properties, including a 500-bed garden-style student housing community.