The Essex, a newly built multifamily property in Belleville, obtained $35.5 million in permanent financing. The borrower recently acquired the 158-unit development and worked with CBRE to obtain the loan. Located at 78-102 Washington Avenue, the Class A luxury rental property includes two prime ground-floor retail units.
CBRE’s team was headed up by EVP Judah Hammer along with Jeff Feldman and Jack Hayes. The financing for the Belleville development was arranged through the Freddie Mac Lease-Up program, an initiative created to provide permanent loans for new multifamily properties entering the latter stages of lease-up.
“We began to engage with our client regarding permanent financing when the property was still 50% occupied to hit the road running and secure the best terms possible,” noted CBRE’s Hammer. “We worked closely with Freddie Mac in obtaining a seven-year loan with the benefit of four years’ interest-only with an excellent fixed rate of 4.92%. We are thrilled we were able to bring this deal home, providing a win for all parties.”
As a bonus, the borrower can take advantage of a “borrow-up” provision, which lets them access cash flow when stabilized and tap into additional revenue and the first mortgage pricing within the first two years of loan origination. This additionally allows the sponsor to gain more leverage upon full stabilization.
The units in the four-story Essex come with quartz countertops, custom cabinets, washer/dryers, stainless steel appliances and high ceilings. Residents enjoy a broad array of luxury amenities, including a fitness center with yoga room, doorman service, lounge, game room, coworking spaces, pet washing area, package room, rooftop courtyard with grills and a firepit, as well as indoor parking and EV charging stations.
