110 Halsted St. in East Orange — Courtesy: SKG Capital
By Joshua Burd
SKG Capital has secured new agency loans totaling more than $9 million to refinance two transit-oriented apartment buildings in East Orange.
The firm, which is based in East Hanover, said the transactions involved a combined 52 apartments across the properties at 110 Halsted St. and 209 William St. Both have benefited from strong operating performance and steady demand, SKG said, adding that the new financing
enhances its capital position while providing long-term financing stability for both.
To that end, the multifamily investor and operator has replaced the existing debt at each asset with larger agency loan facilities tailored to the buildings’ performance and operating profiles.
“We’re pleased with the outcome of both transactions,” said Sanjay Garg, founder and managing principal of SKG Capital. “These properties have performed well, and the new financing gives us additional flexibility while ensuring long-term stability for the assets. East Orange continues to be an important market for us, and we remain focused on creating value through active management, disciplined execution and thoughtful capital allocation.”
The closings come as multifamily owners across the region continue to work through a higher-rate environment, with many looking for ways to improve their capital structures, the firm said. It also noted that, for properties with strong occupancy and steady rent performance, agency financing remains one of the more reliable sources of debt, giving owners a path to refinance existing loans, access equity created at the asset level and preserve flexibility for future investments.
The favorable capital markets activity in a market such as East Orange, meantime, reflects how investors are looking beyond New York City for stable rental assets that still give residents a direct connection to Manhattan, SKG said. The Halsted Street and William Street properties are both within walking distance of NJ Transit stations and benefit from the growing municipality’s relative affordability.
