For Holliday Fenoglio Fowler, senior managing directors Tom Didio and Jon Mikula secured joint venture equity to finance the project's development. To complete the transaction, the HFF duo arranged construction financing of $12.5 million with Boiling Springs Bank and Oritani Savings for the condo portion of the project, and $26 million with Washington Mutual for the rental portion.
The remaining $11.1 million of the financing package was structured as equity and mezzanine debt through an institutional partnership, the general partner of which is an affiliate of Fidelity Management Trust, according to Didio.
"The Park at Palisades offers a solid investment opportunity because of the strong anti-development sentiment Northern New Jersey," says Didio. "This project is expected to be leased and sold out very quickly given the lack of newer developments and consistent area occupancy levels of more than 95%.
"This project had been in bankruptcy for more than 10 years with the previous owner," Didio continues. "We are excited to have been a part of creating desperately needed housing in this community and in this region."
Situated on a 14-acre site in eastern Bergen County, the Park at Palisades will consist of two rental properties and one condo property. Its amenity package will include two swimming pools, a business center, concierge service and nearly 500 parking spaces in a combination of surface parking and three underground levels.
Park West, the two-building rental portion of the project, will have a total of 140 units, while Park East will consist of 64 condo units.
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