Queen’s Gate Apartments in Bound Brook — Courtesy: The Carlton Group
By Joshua Burd
A real estate investment banking firm has arranged $46 million in financing for the developer of Queen’s Gate Apartments, a new 144-unit rental community in Bound Brook.
The firm, The Carlton Group, said the stretch senior loan allowed the borrower to pay off its construction financing and cash out of the project before it reached stabilization. Queen’s Gate, located at 675 Tea St., is just completing its lease-up.
Steven Weiss, managing director at The Carlton Group, arranged the transaction with assistance from Managing Director Jeff Kosow. The three-year financing, which has a loan-to-value ratio of 85 percent, is intended to be a bridge to agency debt once cash flow stabilizes.
“The developer has several deals teed up in their development pipeline and this financing allowed the sponsors to recirculate capital into their other projects,” Weiss said in a prepared statement. “All too often, owners underleverage their properties with bank debt too early in the process being enticed by low interest rates when capital can be redeployed to earn a much higher rate of return.”
