Deer Creek at 305 Deer Creek Drive in Plainsboro — Courtesy: Verde Capital Corp.
By Joshua Burd
A joint venture has landed a $43 million loan to refinance a 288-unit apartment complex in Plainsboro, following a series of upgrades aimed at creating value at the property.
Verde Capital Corp., Kushner Real Estate Group and Oxford Realty Group on Wednesday announced the recapitalization of Deer Creek, which sits at 305 Deer Creek Drive about four miles east of Route 1. Berkadia Senior Managing Director Robert Falese arranged the financing on behalf of the firm’s Philadelphia-based capital markets team.
“The potential we saw in Deer Creek is coming to fruition,” said Jake Reiter, president at Verde Capital Corp. “We worked closely with Robert and his team at Berkadia to create a debt solution that captures untapped value by being able to borrow more incrementally, via a supplemental loan based on final forecasted asset value, as units are renovated and leased at a higher price point.”
Verde, KRE Group and Oxford acquired Deer Creek in 2016 for $45 million and have completed renovations to improve the asset’s profitability and enhance tenant quality of life, according to a news release. That work includes the installation of luxury finishes such as granite kitchen countertops, stainless steel appliances and in-unit washer and dryers, along with the reconfiguration of several unit layouts and construction of a new fitness center.
“Value-add opportunities such as this one are a part of KRE’s ongoing strategy,” said Jonathan Kushner, president of KRE Group. “We remain bullish on New Jersey’s multifamily rental market.”
Deer Creek, which includes one- and two-bedroom apartments, sits on a 34-acre campus and features an outdoor pool, two tennis courts and access to a nature trail that winds along the Cranbury Brook and leads to a nearby park. Ownership also offers a resident shuttle to the nearby Princeton Junction train station.
“The resourcefulness of the borrowers enabled us to structure debt that secured interest rates that are not conventionally available for multifamily properties in the market,” Falese said. “We’re pleased to have worked with such an experienced and savvy ownership team to secure a favorable debt structure for this reinvigorated asset.”