TODAY'S DEALS: NorthMarq’s New Jersey Office Closes $158M Loan Package

NorthMarq’s New Jersey office closes a Freddie Mac CME loan package; HFF closes the sale of a value-add property; and Oculus Capital announces the second phase of a student housing development.

Society Hill Property

Parsipanny, N.J.—NorthMarq Capital announced that the company’s New Jersey office recently closed a $158 million portfolio loan for a package of 15 Class B apartment properties totaling 2,366 units in New Jersey, New York, Pennsylvania and Connecticut.

The borrower, a major private family investor, worked exclusively with Gary Cohen, senior vice president in NorthMarq’s New Jersey office to finance the package through Freddie Mac’s Capital Markets Execution (CME) program.

“The majority of the deals were existing Freddie Mac loans where the borrower elected to refinance now and lock in historically low interest rates,” said Cohen. “Despite many years remaining on the existing loans, we were able to reduce the coupon by anywhere from 100-300 basis points coupled with a very meaningful cash out component, which more than covered the prepayment penalties, enabled our client to lock in these 10-year deals through our seller/servicer relationship with Freddie Mac.”

In addition to this package, Cohen also recently arranged these transactions:

-A $21 million refinance for a 298-unit garden apartment community in Burlington County, N. J. The regional borrower also elected to refinance their existing loan early with a new 10-year term through the Freddie Mac Capital Markets Execution.

-A $12 million loan on a 115-unit co-op apartment building in Hackensack, N. J. The property was a failed conversion, and the sponsor purchased the unsold units and has managed this asset as a rental property. A Pennsylvania based regional provided a facility which allowed the borrower to pay off the existing underlying debt and take out a significant equity component in order to facilitate the acquisition of another multifamily asset.

“The insatiable demand and very strong fundamentals in the apartment sector in New Jersey and the surrounding area are finally allowing debt and equity capital sources to propose some very creative financing options on complex deals,” said Greg Nalbandian, managing director-at NorthMarq’s New Jersey office. “We have a great team in place and have a strong pipeline of deals in process of closing including a major high-rise that was recently completed in Jersey City and securing 30-year self-liquidating financing with a life insurance company on a Class A luxury complex in the Princeton market.”

HFF Closes 416-Unit Sale in Illinois

Aspen Place Apartments

Aurora, Ill.—Holliday Fenoglio Fowler LP has closed the sale of Aspen Place Apartments, a 416-unit, value-add community located in Aurora, Ill. The services firm marketed the property on behalf of seller Kensington Realty Advisors. The property was picked up by a unit of Friedkin Realty Group.

The HFF sales team was led by managing director Marty O’Connell, executive managing director Matthew Lawton and managing director Sean Fogarty.

Aspen Place Apartments was 96 percent leased at the time of sale. The property’s unit mix is comprised of one- and two-bedroom apartment homes and townhomes. Amenities include an outdoor heated pool, business center, fitness center and clubhouse.

Oculus Capital announces development at Slippery Rock University

Slippery Rock, Pa.—Oculus Capital Group has announced plans to develop Phase II of University Village at Slippery Rock (UV@SR), a 152-bed student housing asset located adjacent to Slippery Rock University. The firm expects to break ground by June 2012.

Phase I of University Village is a 632-bed, Class A asset that recently received a $1.1 million capital improvement that provided enclosed outdoor kitchen with hot tub, new basketball and volleyball courts, and a complete renovation of the clubhouse. The property is currently 100 percent leased for the 2011-2012 academic year.

“UV@SR is already the premier student housing property in the SRU market; but the development of Phase II will set us even further apart from our competitors and reinforce our commitment to providing the best student living experience in Slippery Rock,” says Anthony Magnelli, property manager at UV@SR.

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