PRC Group Lands $87M Loan for New Jersey Workforce Housing Portfolio
- Sep 18, 2020
Real estate owner and developer The PRC Group has secured $87.4 million in Fannie Mae financing. Structured by Walker & Dunlop, the financing will go toward the company’s New Jersey workforce housing portfolio, comprised of a total of 792 units, 85 percent of which qualify as mission-driven, affordable housing under Federal Housing Finance Agency (FHFA) guidelines.
The portfolio’s properties are Brighton Arms Apartments in Neptune City; Grandville Towers in Red Bank; and Tree Haven Apartments in Matawan. The PRC Group plans to use the cash-out proceeds for capital improvements and renovations.
During 2020, The PRC Group has gained $125 million in financing arranged by Walker & Dunlop. The portfolio is The PRC Group’s first agency execution. The financing was structured to give The PRC Group the flexibility of four years of interest-only payments and an appealing fixed rate for each of the 12-year loan’s terms. John Banas and Chris Wood, Walker & Dunlop Capital Markets managing directors, worked with Analysts John Wilson and Rhett Saltiel to advise The PRC Group in its first Fannie Mae transaction.
“The opportunity was originated almost simultaneously as COVID-19 hit its peak,” Wilson told Multi-Housing News. “This involved navigating challenges surrounding confirmation of collections, declining rent payments as well as concerns regarding in-person property inspections. Our team was able to surmount the challenges presented by remaining in constant contact with the client and their team.”
Last month, Walker & Dunlop secured a Freddie Mac loan for an apartment community acquisition in suburban Raleigh, N.C.
The three properties comprising the portfolio are all well situated. All three are located near Rt. 35, enabling convenient commutes to job hubs in Trenton and New Brunswick. Each is also located a few miles from the coast and near the Garden State’s Sandy Hook Bay.
All three communities provide one- and two-bedroom apartments. Brighton Arms Apartments is a 428-unit, three-story building. Apartments offer sunrooms, hardwood flooring and walk-in closets. A sundeck is among amenities.
Grandville Towers is a 91-unit, 10-story building. Apartments feature balconies and high-speed Internet access. A media center is among amenities.
Tree Haven Apartments is a 140-unit, two-story property. Apartments feature balconies and high-speed Internet access. A playground is among the property’s amenities.