The Monarch, a 318-unit multifamily property in East Rutherford — Courtesy: Valley National Bank
By Joshua Burd
Commercial real estate lending continues to be a major driver for Valley National Bank, with the company having recorded some $650 million in new loans in the fourth quarter of last year.
The Wayne-based institution said commercial real estate activity across its footprint “continues to contribute significantly to the bank’s bottom line.” That includes robust activity in New Jersey, where Valley has filled its pipeline with suburban downtown multifamily projects and other growing asset classes.
The bank’s recent New Jersey loans include:
- $68 million as the lead participant for the acquisition of a 318-unit multifamily project in East Rutherford
- $21 million for the development of an 18,000-square-foot retail center in Hanover
- $25.9 million for the development of a 186-unit townhouse property in Monroe
- $20 million for the development of a 100-unit multifamily project in Madison
- $24.1 million for the development of a 126-unit multifamily project in South Amboy
- $25 million for the development of a 336-unit multifamily project in Bloomfield
- $21 million for the development of a 35-unit condominium property in Madison
“Valley’s long history and reputation as an experienced and reliable commercial lender has supported our growth as we continue to expand our presence throughout the state,” said Al Sorrentino, first senior vice president and head of Valley’s New Jersey commercial real estate division. “Our lenders understand the local markets and work with borrowers to develop customized solutions that support their business needs in a timely and efficient manner.”
Sorrentino added that one area of focus for the bank is suburbs seeking to revitalize their downtowns. But the bank is operating in other sectors, too.
“Financing developers, who are interested in investing in mixed-use projects, can attract both families and professionals back into town and help bring back that ‘Main Street’ retail segment,” Sorrentino said. “We continue to see plenty of activity throughout broad regions of the state, especially in the multifamily and industrial sectors, including an uptick in the office market.”
Valley said its commercial real estate pipeline is still robust throughout its three major markets — New Jersey, New York and Florida — as it enters 2017. The bank is also continuing its expansion into southern New Jersey, Eastern Pennsylvania and Delaware, “where we have seen an increase for loan demand,” Sorrentino said.