By Joshua Burd
The owner of a new 520-unit apartment and townhome community in central New Jersey has secured $130 million in financing, in a transaction arranged by BWE.
According to a news release, a life company provided the first mortgage loan in connection with the undisclosed property in the New Brunswick area. The financing includes a nine-year, fixed-rate term at a 5.22 percent interest rate, the national mortgage banking firm said, adding that the low rate was secured through a rate lock eight months prior to deal closing, helping the borrower lower exposure while still receiving strong proceeds.
Steve Perricone, a senior vice president in BWE’s Philadelphia office, originated the financing.
“For a large transaction like this, an essential goal for our client was to limit interest rate risk while still getting the pricing and proceeds they needed,” Perricone said. “By working with a life insurance lender who was interested in getting into the pre-stabilized, new construction lending market, we were able to lock in the interest rate during a downdraft in the market and secure a strong deal before the property reached stabilization.
“At BWE, our goal is to work with our clients to identify their key priorities and help find the financing that will allow them to execute on their long-term business plans.”
The firm said the property, located minutes from the Rutgers University campus, was developed in two phases. The first was completed in early 2024 and is currently 99 percent leased, while the second is nearing completion and is in the process of lease up.
Renters at the site have access to a clubhouse with an on-site leasing office, a fitness center, a resident lounge, a business center, an outdoor in-ground swimming pool, a grilling area and two dog parks, the news release said. The property will also include parks, plazas and open spaces, as well as retail space and a set-aside of 104 units to meet local affordable housing requirements.
