Rosenberg, Silbersher &Frankel of DeerwoodCapital arranges financing Natixis lends $115 million to Lincoln Equities Group for New Allergan U.S. HQ

ISSUE HIGHLIGHTS Volume 29, Issue 9 April 28 - May 11, 2017


nity, with average occupancy rates in the mid to high 90 percent range. It is situated in a scenic hillside location atop Baltusrol Mountain with walk- ing paths, tree-lined streets, an outdoor pool and a tennis court. As part of the property upgrades, the KRE/Avenue partnership plans to build a brand new clubhouse and state- of-the-art fitness center. KRE has a number of ad- ditional upgrades planned for its recent garden apartment acquisitions, some of which are well underway. The company will renovate unit interiors, including the addition of new kitchen and bathroom finishes and washer/dryers. It is also initiating major capital im- provements such as new roofs, parking and sidewalk repairs, and landscaping upgrades. “Since beginning this stra- tegic initiative, we have de- ployed more than $222 million in acquisition capital and we continue to actively seek out new opportunities,” said Jona- than Kushner, President of The KRE Group. “As the New Jersey rental market continues to evolve, we believe this is a component of the market that is poised for incredible growth.” n Natixis is an active lender in New Jersey, financing many deals across the state in 2016 including $209 million for the Novo Nordisk Headquarters (office) in Princeton, $27 mil- lion for 45 Waterview Boule- vard (office) in Parsippany, $27 million for Mendham Shopping Center (anchored re- tail) inMendham, and $91 mil- lion for the Regents Portfolio (medical office) with properties in various locations including Jersey City, Fair Lawn, and Hackensack. n 1,000 jobs in the state and to add 300 more. Over $100 million will be invested in the office renovation. Renovations are under way and Allergan plans to take occupancy in August 2017.

adison, NJ — Natixis provided $ 1 1 5 mi l l i o n o f


Springfield, NJ — The KRE Group has acquired Summit Hill, a 228-unit rental community in Springfield for $70 million, in partnership with Avenue Realty Capital , a real estate investment firm focused on multifamily and mixed-used properties in the New York metropolitan area. Summit Hill, located at 100 Stone Hill Rd., is a garden style apartment community tucked away in a wooded setting near the nexus of Routes 78 and 24 in western Union County. It is the latest of three garden 10-year, fixed-rate CMBS fi- nancing to Lincoln Equities Group on the new Allergan U.S. headquarters located at 5 Giralda Farms in Madison. Natixis anticipates securitiz- ing a senior mortgage loan and syndicating the remaining sub- ordinated debt. Proceeds were used to refinance existing debt and to fund reserves to finance tenant improvements, leasing commissions, capital improve- ments, and the construction of a new parking facility. The financing was arranged by David Rosenberg, Mark Sil- bersher , and Rafi Frankel at Deerwood Capital . The property is located on

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5 Giralda Farms

a 310-acre gated campus and consists of three buildings: a 431,495 s/f class A office building; a 12,985 s/f daycare center; and a 9,200 s/f carriage

house that will be used as event space. Allergan won $58 million in tax incentives from the State of New Jersey for the project by pledging to keep

TheKREGroup&AvenueRealtyCapital acquire $70 million rental property in Springfield, NJ


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Summit Hill

apartment acquisitions total- ing over $222 million that KRE has completed in 15 months, comprising over 1,065 apart- ment units. The Summit Hill acquisition is part of a strategic initiative KRE has launched to substan- tially grow its “value-add” multifamily business. The com- pany purchased Deer Creek, a 288-unit rental community in Plainsboro for $45.5 million in February, 2016, and Royal Gar- dens, a 550-unit rental property in Piscataway, NJ, for $107.25 million in November, 2015. Like Deer Creek and Royal Gardens, KRE sees its acqui- sition of Summit Hill as an opportunity to enhance tenant quality of life and increase the

property’s value through capi- tal improvements. “The common thread in all three of these assets is they are well-located properties in high- demand, supply-constrained markets, and they all offer the opportunity to create value through investments in capital improvements, unit renova- tions and improved property management,” said Darin Rai- ken , director of acquisitions for The KRE Group. “We have already had considerable suc- cess implementing this strategy at Deer Creek and Royal Gar- dens, and we identified Summit Hill as a property with similar potential.” Summit Hill has historically been a well-occupied commu-


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