By Joshua Burd
A developer has secured a $395 million loan for a portfolio of multifamily assets, including the former Newark Bears stadium site where plans now call for 4,200 residential units.
The lender, Madison Realty Capital, is providing the loan to Accurate Builders & Developers as part of a transaction announced Monday afternoon. The debt will support the developer’s acquisition of the 11-acre site in Newark, which public officials have long sought to repurpose, while also financing 1,161 units at multifamily projects in Bayonne, Raritan and Linden.
“This transaction reflects Madison Realty Capital’s ability to provide a complex, hybrid financing solution to a high-quality borrower across price points and all stages of the project lifecycle, from land acquisition, ground-up development and leasing,” said Josh Zegen, managing principal and co-founder of Madison Realty Capital. “We are thrilled to expand our relationship with Jack Klugmann of Accurate Builders & Developers and to work with the town of Newark on this exciting, once-in-a-generation project that benefits the economic revitalization of downtown and will bring much needed high quality housing options to Newark’s hardworking residents.
“Bayonne, Raritan and Linden are attractive, transit-oriented locations with growing demand for high-quality rental housing options.”
Located at the northern edge of downtown Newark, the former Riverfront Stadium property sits west of McCarter Highway between Bridge and Division streets. Jack Klugmann, CEO of Accurate Builders, said his firm closed on the site last week and is now proceeding with a plan to develop 4,200 residential units — including 200 affordable homes — along with hospitality and destination retail uses, co-working space and publicly accessible green space.
The multiphase project, which will also include up to 3,000 parking spaces, is adjacent to light rail service and across the street from Newark’s Broad Street station.
“It’s going to transform the city,” said Klugmann, who hopes to begin the first phase within nine to 12 months. In mid-April, city officials approved an affiliate of the Lakewood-based firm as the site’s developer, according to TAPintoNewark.
Shaya Ackerman of Meridian Capital Group arranged the acquisition financing, which comes as part of Accurate Builders’ growing pipeline of apartment communities. The loan from Madison Realty also includes a new 276-unit building in Raritan, a 234-unit property in Linden and a two-building, 651-unit complex under construction in Bayonne.
Leasing is underway at the Raritan property and set to begin this summer in Linden, while the Bayonne development is slated to come online starting late this year.
Gibbons PC represented Accurate Builders in acquiring the stadium site and securing the loan from Madison Realty Capital, a private equity firm.
Firm client Accurate Builders & Developers closed Tues. on its acquisition of the former Newark Bears Stadium site & secured a $400m construction & pre-development loan. Proud to support clients in the development/redevelopment of the @CityofNewarkNJ, home to our HQ since 1926! pic.twitter.com/o1iPNQ6RGv
— Gibbons P.C. (@GibbonsPC) April 29, 2021