By Joshua Burd
The owner of a 38-unit apartment complex in Gloucester County has secured more than $10.6 million in permanent financing for the property, its lender announced last week.
In a news release, Eastern Mortgage Capital said the loan will support what’s known as The Retreat @ 385 in the Williamstown section of Monroe Township. The undisclosed borrower is the owner of the townhome-style complex at 385 North Tuckahoe Road.
“Despite the challenging credit environment, we were able to refinance the existing debt at a lower rate and provided cash out proceeds to the owner,” EMC Vice President Peter Tousignant said. “Our low rate, long amortization and low minimum (debt service coverage ratio) are among the most aggressive of any multifamily financing program. No other loan product considered by the borrowing team came close to these proceed levels.
“The fixed rate loan with no mandatory balloon payment and declining prepay structure positions the property for long-term stability and affords maximum flexibility to the borrower.”
Eastern Mortgage noted that, as with all of its loans, the $10.65 million package is fully nonrecourse to the borrower with no carve-outs, is assumable and includes a step-down prepayment with no yield maintenance or defeasance that expires after 10 years.
