Capital One Provides $228M for Northern NJ Multifamily Portfolio
The adjustable-rate loans have seven-year terms with five-year extension options if performance goals are met.
BLOOMFIELD, NJ—New York City-based lender Capital One reports it has provided a total of $228 million in financing for the acquisition of a portfolio of seven Northern New Jersey multifamily apartment communities involving more than 1,800 residential units.
Mark Kraehling, VP with Capital One Multifamily Finance, originated the transactions. Abe Hirsch, senior managing director at Meridian Capital, represented the acquisition financing request. The firm did not divulge the identity of the seller or the buyer of the portfolio that changed hands.
The portfolio includes the 85-unit Franklin Manor and the 816-unit Forest Hill Properties in Bloomfield; the 200-unit Nutley Properties in Nutley; the 120-unit Essex Gardens in Maywood; the 174-unit Hillside Village, the 198-unit Ridgefield Gardens, and the 238-unit Shaler Properties in Ridgefield.
Capital One closed the loans, which included provisions for swaps and capital markets execution, in under 30 days.
“These transactions illustrate Capital One’s capacity to deliver large complex transactions with favorable terms in a tight timeframe,” Kraehling says. “It required close coordination among several different departments within the bank to move the deal forward.”
The adjustable-rate loans have seven-year terms with five-year extension options if performance goals are met. Their initial four-year interest-only periods will be followed by amortization on 30-year schedules. The borrowers have the option to extend the interest-only period an additional three-years subject to meeting specific conditions, Capital One states.