Tona Construction and Management is developing a 15-story, 203-unit apartment building at 50 Sussex Ave. in Newark. — Rendering courtesy: FM Capital
By Joshua Burd
A developer has secured nearly $50 million in financing for a planned 203-unit apartment building in Newark’s University Heights section, in a deal arranged by FM Capital.
In a news release, the firm said it sourced the construction loan on behalf of Freehold-based Tona Construction and Management and KS Group, noting that the borrower is eyeing a mid-2024 completion date for the 15-story project at 50 Sussex Ave. Three lenders — Valley National, Bank Leumi Le-Israel and Be-Aviv — are providing the financing with a 24-month term.
FM Capital Executive Vice President Josh Pollack and vice presidents Avi Eyal and David Wenger brokered the $49.9 million transaction.
“This property is a perfect illustration of the revitalization now underway in Newark’s central core,” Eyal said. “FM Capital leveraged our keen understanding of the real estate finance marketplace to deliver a competitive loan for this outstanding project.”
Based in Manhattan, FM Capital noted that the project is the first New Jersey development for Tona Construction, which has a substantial portfolio in Brooklyn and Florida. The INOA Architecture-designed building, whose ground floor will include 2,000 square feet of commercial space, figures to draw from a neighborhood that includes the New Jersey Institute of Technology, Rutgers University and Saint Michael’s Hospital.
KS Group, meantime, is led by Daniel Spiegel and Yehuda Kotkes and has 360 units under construction in Newark.
The transaction carries a 75 percent loan-to-cost ratio, including the property’s imputed land value, amounting to 80 percent of actual costs, the news release said. Pollack added that the developer used its own funds to pour 12 floors of concrete before the deal closed.
