A rendering of a new 58-unit apartment project at 51 North Walnut St. in East Orange — Courtesy: Meridian Capital Group
By Joshua Burd
Meridian Capital Group has arranged $7.6 million in construction financing for a new 58-unit residential project in East Orange, the real estate services firm said.
In a news release, Meridian said the 18-month loan will support the development of the five-story property at 51 North Walnut St. Upon stabilization, the financing will convert to a five-year permanent loan for $8.2 million.
Meridian Senior Managing Director Israel Schubert, Senior Vice President Emil DePasquale and Vice President Nathan Baldinger, negotiated the financing, the news release said. A balance sheet lender is providing the financing, which features a prime-based floating rate and interest-only payments.
“In a time where construction lending is becoming more and more conservative and lenders are tightening their underwriting guidelines, we were able to negotiate a construction loan that maximized the loan proceeds at 90 percent of the total project cost,” Depasquale said. “Additionally, the deal was structured with a permanent loan conversion at the time of stabilization that will allow the borrower to recapture their equity up to 100 percent of the total project cost.”
Meridian touted the location of the project, which will have direct access to restaurants, shopping centers and schools, along with proximity to both the Brick Church and East Orange train stations.
