F inancial D igest featuring 1031 E xchange

M id A tlantic Real Estate Journal —March 18 - April 21, 2022 — 3A


STRO lands $39M to refi. 8 NJ assets with Signature Bank

Debt/equity team secures acquisition financing Northmarq completes $51M sale of Cottage Grove Apts.


EWPORT NEWS, VA — Wink Ewing , managing director,

Mike Marshall , managing director, Matt Straughan , associate and Jared Alcorn , senior analyst on Northmarq’s Richmond investment sales team collaborated to arrange the $51 million sale of Cot- tage Grove Apartments. The class C+ multifamily property (contains 112 buildings/552 units ($92,400 PPU) and is located at 614 Peninsula Dr. in Newport News. Northmarq represented both the buyer, Featherstone Partners and the seller, Beachwold Residential. Featherstone intends to reposition the asset with en- hanced amenities and opera- tional improvements through new management, selecting Drucker & Falk for property management. The company commented on the acquisition, “the employers in Newport News play a major economic role in not only the Hampton Roads region but also on the national defense stage. We are proud to have an asset that the surrounding workforce will call home “This opportunity presented a blank canvas with tremen- dous upside for the buyer as the property was built with great bones and has a neigh- borhood feel that nearby com- petitors lack,” said Ewing. “At the time of closing, new leases were seeing 20%+ trade-outs and occupancy was at an all- time high.” Hunter Wood , vice presi- dent of Northmarq’s Richmond debt/equity team secured ac- quisition financing of $42.72 million for the property via a bridge loan. Northmarq arranged financing for Feath - erstone Partners through its relationship with a bridge/ mezzanine lender. “Northmarq had an established relation- ship with the borrower, which helped move the deal through closing on an expeditated time- line,” said Wood. The property benefits from a “Goldilocks” location—it is in one of the more afford- able housing markets in

500 West Main Street in Wyckoff NJ

with Signature Bank,” said Jack Shulman , STRO’s direc - tor of acquisitions and capital markets. “Zachary Bermudez and his team were a pleasure to work with and we look forward to doing more busi- ness with them in the future.” “Industrial building demand continues to grow throughout New Jersey. STRO has built a solid foundation of these as- sets, resulting in its leadership position. Signature Bank , through our experienced CRE Group, has maintained its commitment to serve borrow- ers like STRO within this im - portant arena,” said Zachary Bermudez , group director – senior vice president, Signa- ture Bank’s Commercial Real Estate Lending Group. MAREJ

NORTHERN NJ — The STRO Companies (STRO) , a real estate services pro-

vider for The M i l l s t e i n Family Of- fice , has refi - nanced eight buildings in Woodbridge, Moonachie, C l i f t o n , W o o d l a n d

Jack Shulman

Park, Wyckoff and Roselle, NJ with Signature Bank totaling $39 million. The eight properties com- prise of over 395,000 s/f of in- dustrial, last mile and logistics facilities in the Northern New Jersey Industrial Corridor. “We are pleased to continue and to grow our relationship

Cottage Grove Apartments

the Newport News metro area, adjacent to Newport News Shipbuilding, while only being two miles west of Downtown Hampton. Resi- dents have just a short drive to Peninsula Town Center/ Hampton Coliseum, a top retail/shopping destination. Cottage Grove Apartments is situated within three in- stitutions of higher learning: Christopher Newport Uni- versity (6.3 miles), Thomas Nelson Community College (6.5 miles) and Hampton University (7.4 miles). Other nearby points of interest in- clude: Buildbird Gap Farm (4.2 miles), Noland Trail at Mariner’s Museum Park (5.1 miles), Mariner’s Museum (6 miles), Virginia Living Museum (6.1 miles) and Fort Monroe National Monument. Apartment amenities in- clude: High-speed internet ac- cess, in-unit washer/dryer, air conditioning, heating, ceiling fans, smoke free, cable ready, tub/shower, oven, range, refrig- erator and freezer. Community amenities include: Laundry facilities, maintenance on site, property manager on site, renters insurance program, online services, planned social activities, health club dis- count, business center, pool, playground and courtyard.

The sale and financing of Cottage Grove Apartments follows on the heels of mul- tifamily markets rebounding from the pandemic, according to Northmarq’s recent Na- tional Multifamily Outlook. Investors were attracted to the sector’s explosive rent growth, tight vacancies, spik- ing absorption and strong migration trends. Investors like Featherstone Partners are recognizing attractive yields in multifamily that may be difficult to achieve elsewhere. Read more about the demand- supply imbalance fueling stag- gering rent growth, tight va- cancies and robust investment opportunities in Northmarq’s Multifamily Outlook. About Northmarq Northmarq offers commercial real estate investors access to experts in debt, equity, invest- ment sales and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long and short-term investment goals. Our culture of integrity and innovation is evident in our 60- year history, annual transac- tion volume of $30 billion, loan servicing portfolio of more than $70 billion and the multi-year tenure of our more than 700 people. MAREJ

SCOPE secures $17.7M construction debt for Phila. mixed-use development

PHILADELPHIA, PA — SCOPE Capital Group, LLC has arranged $17.7 million in construction financing for Box Factory Lofts, a mixed-use development in the Fishtown neighborhood of Philadelphia. SCOPE Capital Group’s se - nior director Edward Brown negotiated the financing with the collaboration from SCOPE’s investment sales group on be- half of the borrower. The loan was committed and closed at 80% loan to cost and featured a 24-month initial term. Located in Fishtown at the intersection of East Colum- bia Avenue and North Front Street, the project includes the ground up construction of 63 luxury residential units over 1,100 square feet of commercial space with 12 parking spaces. The proposed plans, created by SITIO Architecture + Urban - ism, join the new build with

500 West Main St. in Wyckoff NJ the existing 20 units at 21 E. Columbia Avenue by a com- mon, landscaped courtyard and will be served by a new fitness center and bike storage ame- nity. The residential component will include studios, one and two-bedroom units. Construction is scheduled to be completed mid 2023. “Located at 31 E. Columbia Ave., Box Factory Lofts occupies a prominent corner along the expanding Front Street corridor of Fishtown,” adds Brown. “We look forward to seeing our cli- ent execute on this project and add to the flourishing Fishtown community.” MAREJ

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