Beech Street Closes $70M for N.J. High-Rise
- Feb 01, 2013
Jersey City, N.J.—Beech Street Capital has closed a $70 million Fannie Mae conventional loan to refinance The Gotham, a 22-story, 220-unit community in Jersey City. The deal was brokered by BlueGate partners, a boutique advisory and transaction firm based in Manhattan. The fixed-rate loan has a 10-year term, 9.5 years yield maintenance and a 30-year amortization schedule.
Built in 2000, The Gotham was the first luxury apartment asset built in Jersey City since the 1950s not located on the waterfront. The asset has six occupied commercial spaces totaling 20,000 square feet on the ground floor. There is also a 340-space, four-story parking garage. The Gotham is three blocks west of the Exchange Place PATH station and six blocks north of the Paulus Hook Ferry.
Financing was tricky because the borrower had to secure a loan that was large enough to compensate for the prepayment penalty on its existing loan. Additionally, the property was subject to a PILOT agreement with Jersey City, which expired in 2020. But Beech Street was up to the task, and ultimately found terms that lowered interest payments by approximately 80 bps.
Campus Apartments begins phase two of Shippensburg overhaul
Shippensburg, Pa.—Campus Apartments has wrapped up the first phase of a $200 million student housing initiative at Shippensburg University in Shippensburg, Pa. The $70 million first phase includes three new housing residences that accommodate 924 students. The second phase has a cost estimated at $65 million, and will accommodate 922 students starting in the fall of 2014.
“The completion of the first phase of this project brings the University one step closer to reaching our goal of providing top-quality housing to all of our students,” says Bill Ruud, president of Shippensburg University. “The living, social and study spaces of phase I will foster a living-learning environment for students, and we look forward to expanding these amenities through the second phase of this milestone project.”
The first and second phase was financed by RBC Capital and closed on bond financing totaling $70 million and $65 million for the respective phases. The third phase is slated for a completion in fall of 2015.
Waypoint acquires suburban Atlanta complex, expands S.C. portfolio
Marietta, Ga.—Waypoint Residential acquired The Hamptons at East Cobb in the suburban Atlanta submarket of Marietta. The 196-unit apartment complex, which is 96 percent leased, was constructed in 1997. The purchase price was not disclosed.
The Hamptons is located along Roswell Road in one of Atlanta’s most desirable suburbs. Several major business districts including Buckhead, Cumberland/Galleria and Perimeter Center are located within 10 miles of the property. The Hamptons also boasts convenient access to downtown Atlanta via major highways and secondary roads.
In addition to the Hamptons, Waypoint Residential has acquired a 223-unit apartment complex located less than 20 miles outside of Greenville, S.C. The property, known as Garden District, was 96 percent occupied as of year-end 2012. The Class-A apartment community was constructed in 2008. The purchase price was not disclosed.
Led by real estate industry veteran Scott Lawlor, Waypoint Residential is a privately-held investment and management firm that acquires and operates apartment communities throughout the nation. The firm is headquartered in Greenwich, Conn., with offices in Atlanta and Boca Raton. Waypoint Residential owns and manages approximately 10,000 apartment units located in seven states.
Waypoint Residential CEO Scott Lawlor says, “By closing out the year with these acquisitions, we maintain our momentum as the U.S. apartment market continues to experience positive fundamentals.”