A rendering of a 50-unit multifamily development at 276 Reock St. in Orange — Courtesy: PEEK Properties
By Joshua Burd
PEEK Properties has landed a nearly $10 million construction loan for a 50-unit multifamily project in Orange, the first piece of a three-phase development in the municipality.
Plans for the property, located at 276 Reock St., call for a mix of market-rate units and amenities less than a block from NJ Transit’s Orange station. The developer is now moving ahead after securing the $9.75 million loan from Bogota Savings Bank, in a transaction arranged by Meridian Capital Group.
“Underway site work at 276 Reock St. is focusing on clearing and grading in preparation for pouring the foundation and footings,” PEEK Managing Partner Emanuel Klein said. “We expect development to take about 14 months, with lease up slated for the winter of 2022.”
Part of the Reock Street Redevelopment Area, the project is the first phase of a new urban residential enclave called Orange Crossing. All three properties in the proposed development are located in federally designated Opportunity Zones, providing tax benefits to investors.
The initial piece, known as Apex Orange Crossing, will have a mix of studio, one- and two-bedroom apartments, according to a news release. On-site amenities will include a gym, a parking garage, automated parking and package delivery systems and car-charging stations.
“Bogota Savings Bank is proud to be the financier for a project designed to elevate the quality of life for those in the communities we serve,” said Kathleen Pless, senior vice president of commercial lending. “We are pleased to collaborate with local developers like PEEK and their partners to enhance the urban and suburban commercial landscape statewide.”
PEEK noted that the site is also a block from the Main Street Business District and part of the municipality’s efforts to revitalize the area between the NJ Transit railroad right-of-way and Interstate 280. The area is bounded by South Essex Avenue to the west and South Center Street to the east.
The developer also recently secured site plan approvals from the local planning board for the adjacent second and third phases, which will feature another 99 units at 495 Day St. and 91 units at 72 South Essex Ave., respectively. The so-called Summit Orange Crossing and Pinnacle Orange Crossing are slated to come online within six months of the first phase, with combined development costs of more than $59 million.
“This is an exciting time for PEEK Properties, a leader in streamlining some of the first QOZ projects in New Jersey — from initial-to-final fundraising and preconstruction approvals to ground-up construction and lease up,” PEEK Managing Partner Phillip J. Evanski said, noting the firm is finalizing the remaining equity for the second phase by year-end while launching initial funding for the third phase. “All of this comes on the heels of completing our first joint venture development — 475 William St. in the Brick Church neighborhood of East Orange — since forming PEEK in late 2018.”