A developer plans to construct three buildings with a combined 61 apartments and commercial space at 270 and 299 Irvington Ave. in South Orange. — Rendering courtesy: Kennedy Funding
By Joshua Burd
A developer has closed on a $2.85 million land loan from Kennedy Funding in connection with plans to build 61 apartments and commercial space in South Orange.
According to the lender, which is based in Englewood, the borrower is planning a 2027 groundbreaking for the project at 270 and 299 Irvington Ave. The development will include three buildings with parking, transforming a 2.2-acre assemblage near a vibrant downtown.
Kennedy Funding closed the land loan at a 55 percent loan-to-value ratio, noting that the borrower acquired the assemblage in August in a $5.1 million all-cash deal.
“At Kennedy Funding, we want to maximize opportunity for every borrower, which is not always easy when securing a land loan,” said Mark Falzone, an executive loan officer at the firm and the lead executive on the deal. “Our experience closing billions in land loans gives us the experience and knowledge necessary to help borrowers capitalize on as much value as possible from their properties.”
According to a news release, the project’s largest building at 270 Irvington Ave. will have 41 residential units over 11,052 square feet of ground-floor commercial space. A smaller building behind it will have eight apartments over 4,566 square feet, while the parcel across the street at 299 Irvington Ave. is slated for 12 additional units over 7,137 square feet of commercial space.
Plans also call for 115 parking spaces, some above ground and some underground, at 270 Irvington Ave.
“Housing needs in New Jersey are growing each year, and mixed-use developments like this one will deliver much-needed units to a heavily populated area of the state,” Kennedy Funding CEO and President Kevin Wolfer said. “Understanding these economic factors is key whenever we evaluate a deal.”
The lender noted that the South Orange-Maplewood area in Essex County attracts artisans, families and young professionals from New York City and throughout New Jersey, contributing to a thriving creative community that includes painters, photographers, writers and sculptors. The future complex is steps from South Orange’s downtown, home to the South Orange Performing Arts Center and a bustling business community, while the site is six blocks from the South Orange train station and minutes from the Garden State Parkway.
“Smart development projects in high-demand neighborhoods are a perfect way to bring value to an empty property and vibrancy to a community,” Wolfer said. “Whether artisans, North Jersey commuters or train riders into New York City, South Orange’s prime location and brimming arts scene offer culture and convenience for everyone.”
