A development that revamped a long-neglected property into a modern housing complex has obtained a fresh loan just months after launching their operations.
Drew Capital has announced their arrangement of a $70-million, non-recourse, interest-only loan for Cosmo 440, a 25-story, 216-unit multifamily property located at 440 Elizabeth Avenue. Situated in the Weequahic neighborhood of Newark and first built in 1969 as Carmel Towers, Cosmo 440’s recent full gut renovation transformed the tower into a modern, class-A, multifamily community.
Before the revitalization, the 25-story structure had closed in 2011 after the Department of Housing and Development pulled federal funding after a series of failed inspections. The building’s new 216 residences consist of 48 one-bedroom, 120 two-bedroom and 48 three-bedroom units, including 190 market-rate units and 26 affordable units.
The loan was arranged by Akiva Drew, founder and principal of Drew Capital, which has been involved with the property through multiple stages of its redevelopment and capitalization. Drew Capital had previously arranged construction financing for the building’s gut renovation and by lease-up financing.
“Cosmo 440 is a good example of what we mean by understanding the full cycle of a real estate transaction,” said Mr. Drew. “We’ve worked with the ownership and the property from the construction phase, through lease-up, and now into its next stage of financing. Executing successfully requires understanding every dimension of the deal: the sponsor, the business plan, the asset, the capital structure and, in this case, the Newark market specifically.”
The borrower is 440 Elizabeth NJ Urban Renewal LLC, with Yisroel Berger as sponsor. The financing was provided by Dwight Mortgage Trust, a New York-based real estate finance and investment firm.
“Our approach at Drew Capital is not to simply source a loan at one point in time,” Mr. Drew added. “We want to understand where an asset has been, where the ownership is taking it, and what the appropriate capital looks like at each stage. This continuity enables us to advise clients and execute more effectively as their properties evolve.”
Overlooking Weequahic Park, Cosmo 440 totals 272,222 gross square feet, with 177,336 square feet of net rentable area. Amenities include a concierge, co-working lounge, bar and social area, fitness center, playground, and a parking garage with EV charging.
