The Nell at 100 South Washington Ave. in Dunellen — Courtesy: Prism Capital Partners
By Joshua Burd
Prism Capital Partners has secured nearly $54 million in fixed-rate financing for The Nell, a development that has brought new apartments, townhomes and retail space to Dunellen.
The firm this week announced that New York Life Real Estate Investors provided the seven-year loan in connection with the project at 100 South Washington Ave., directly across from the Dunellen train station. The deal follows last summer’s lease-up of the property’s 252 apartments, which occupy the site alongside a 9,300-square-foot, freestanding retail building and 130 for-sale townhouses developed by K. Hovnanian Homes.
KeyBank Real Estate Capital sourced the $53.9 million loan on Prism’s behalf via an exclusive agreement, noting that the deal enabled Prism to take out its construction financing with additional proceeds at closing plus an opportunity to earn out future dollars.
“We have enjoyed a longstanding relationship with Prism,” said KeyBank’s Rodney Shenman, a senior mortgage banker, who led the process along with Greg Halvorson, vice president for investor placement. “This was a great opportunity for us to represent first-class local sponsorship for a Class A property that symbolizes a strong beacon of development for Dunellen.”
The Nell has revitalized the former site of the borough’s Art Color industrial facility, with apartments that feature upscale finishes and appliances. Residents, meantime, have access to a clubhouse with a high-end fitness center, a yoga room and a community kitchen, plus an outdoor resort-style pool and a bar with televisions and lounge seating.
Prism’s Eugene Diaz, a principal partner with the Nutley-based firm, noted that The Nell’s success reflects the ongoing demand for multifamily in dynamic downtowns.
“The opportunity here was to lock in the rate on takeout financing while the property was still in lease-up,” Diaz said. “We are thrilled with the choice of lender and with KeyBank’s success in what has been a turbulent market.”
