A rendering of 224 and 230-232 Hope Ave. in Passaic — Courtesy: Progress Capital Advisors
By Joshua Burd
The developer of a new 40-unit multifamily building in Passaic has secured more than $4 million in financing, Progress Capital Advisors said last week.
The commercial real estate mortgage brokerage firm said it secured the $4.32 million loan to finance the land acquisition and subsequent construction of the project, a four-story complex at 224 and 230-232 Hope Ave. Construction is scheduled to begin immediately and continue for 12 months, with completion slated for the second quarter of 2019.
Progress Managing Partner Kathy Anderson negotiated a 36-month, interest-only loan floating at one-month LIBOR plus 310 basis points, according to a news release. The loan represents a 75 percent loan-to-cost ratio and 68 percent loan-to-stabilized-value.
The borrower may repay the loan in full at any time without penalty, the news release said.
The newly constructed building will include five one-bedroom units and 35 two-bedroom units.