New Jersey Luxury Project Receives $60M Construction Loan
- Jul 19, 2019
A new mixed-use development featuring luxury apartments and retail will be constructed on a site along the Hackensack River at 238 W. Fort Lee Road in Bogota,.N.J. New Providence, N.J.-based PCD Development, LLC, a subsidiary of PCD Capital LLC, has teamed with Saber Real Estate Advisors, LLC of Armonk N.Y. to develop the property.
The Equity Debt & Structured Finance (EDSF) team of Cushman & Wakefield advised on the financing furnished by M&T Bank and BBVA USA. Working alongside multifamily investment sales specialist Brian Whitmer, EDSF’s John Alascio and Sridhar Vankayala provided the advisory service to the developers.
The submarket is in a state of transformation, which made it challenging for the EDSF team to locate true rent and sale comps. Additionally, the loan size of $60 million was comparatively large for one bank to handle.
“We leveraged Cushman & Wakefield’s regional investment sales, appraisal and market research teams to build a case and triangulate comps in a market that is still transforming,” Vankayala told Multi-Housing News. “Our team also understands the story and dynamics in this submarket given we recently also arranged a $52 million construction loan on Walcott Hackensack and are currently marketing 21 Main Street in Hackensack for a sale,” he added. “Regarding the loan size, our deep relationships with both regional and local lenders enabled us to arrange an attractive club deal that was beneficial to all parties. And given our roster of closed and current transactions, we were able to compare and contrast and secure best terms for the sponsor.”
The Bogota development will feature upscale amenities, the most high-profile of which will be an 8,000-square-foot clubhouse with fitness and media rooms. An additional 8,000 square feet of onsite retail space will be incorporated into the structure.
The Hackensack-Bogota submarket’s wholesale transformation is evident in the number of new developments either under construction or on the drawing boards. Waypoint Residential is particularly active in the area. The company has six rental housing communities underway in the Northeast and West.
The site at 238 W. Fort Lee Road puts future residents close to shopping, dining and schools, as well as health care complexes like Hackensack Meridian Health and Holy Name Medical Center. The location of the future apartment community is close to a variety of parks and other recreational opportunities. Nearby are Foschini Park, Terhune Park, Oscar E. Olsen Park and the Teaneck Creek Conservancy.
The apartment community will feature a new on-site NJ Transit bus stop providing access to New York City. Public transportation lines in or near Bogota serve commuters traveling to and from New York City’s Upper West Side and the Meadowlands Arena in East Rutherford, N.J., as well as the cities of Secaucus and Nutley, N.J.