7-24-20

F inancial D igest F eaturing T ax I ssues /A ccounting

M id A tlantic Real Estate Journal — July 24 - August 13, 2020 — 9A

www.marej.com

Nalbandian and Zilenziger represent borrower JLL arranges $59.975 Million financing of class A office assets P

For South Amboy multi-family acquisition Cronheim secures $38.625M financing & preferred equity

ARSIPPANY, NJ — JLL Capital Mar- kets has arranged $59.975 million in financing for Morris Corporate Center 1 & 2, a two-building, class A of - fice complex totaling 550,000 s/f in Parsippany. Working on behalf of the borrower, P3 Properties , JLL placed a four-year, float - ing-rate acquisition bridge loan through Bridge Invest- ment Group . The properties are located at 300 Interpace Pkwy. and 1 Upper Pond Rd. within the larger Morris Corporate Center master planned de- velopment in the Parsippany submarket of New Jersey. The 31-acre site is less than a mile from I-80 and in close proximity to Rte. 46. Morris Corporate Center 1 & 2 fea- tures four full-height atrium lobbies, two full-service cafes, a 5,000 s/f fitness center with locker rooms and a yoga studio, two conference areas including an executive board - room, covered and surface parking and a central pond with trellis seating areas and walking path. The four-story properties are currently 67% leased to a variety of tenants including Zurich Insurance, York Risk Services, Ipsos, ICAP and Wallenius Wil - helmsen. The JLL Capital Markets team representing the bor- rower was led by senior man- aging director Greg Nalban- dian and associate Andrew Zilenziger . “This value-add bridge loan

Bayside Cove Apartments

Amboy Train Station, the planned South Amboy Ferry Terminal and the Raritan Bay Waterfront. In Union, NJ, Cronheim Mortgage has secured $12.8 mi l l ion in financing for a 350,000 s/f shopping center on Rte. 22. One of Cronheim’s life com- pany correspondents provided a long-term mortgage on the center which features Shop- Rite and Best Buy as anchors. The 10-year, non-recourse loan provided a rate lock at applica- tion fixed in the low 3%’s. The loan was closed in late- April, despite several tenants required to remain closed by State mandates related to COVID-19. Cronheim worked to get the lender comfortable with the collateral and market despite the interruption to business. This seven-building center is well-located in a densely popu- lated area of Union County, NJ, and has been well occupied since opening in the 1950’s. MAREJ

SOUTH AMBOY, NJ — Cronheim Mortgage has ar- ranged a $32.625 million loan and $6 million preferred equity investment for the acquisition of Bayside Cove Apartments, a 127-unit, class A multi-family complex located in South Am - boy. The Sponsor went under con- tract on the acquisition in late 2019, and Cronheim secured a commitment from a local bank shortly thereafter. The seven- year loan provides two years of interest only, a fixed interest rate at 3.375% and an LTV of 75%. The preferred equity was provided by a private investor, sourced by Cronheim. Despite the COVID-19 lock- down and the unknown future impact from the virus, Cron- heim was able to maintain the initial debt and equity terms and closed the acquisition in late-March. The complex was constructed in 2018 and features luxury amenities. It is located within walking distance of the South

Morris Corporate Center 1 & 2

was closed just before the impact of the Covid-19 crisis became widespread,” Nal- bandian said. “Bridge distin- guished themselves from the onset and executed flawlessly, providing P3 with a very at- tractive rate at 80% LTC with a future funding facility on a non-recourse basis.” In other news JLL Capital Markets news, the team of senior managing director Thomas Didio and analyst Gerard Quinn has arranged $30 million in financing for Ivy Lane, a 237-unit, garden- style multi-housing commu- nity in Bergenfield, Bergen County. JLL worked on behalf of the borrower, Tower Manage- ment Service, L.P., to secure the 10-year, fixed-rate loan through Freddie Mac . The loan will be serviced by Hol- liday Fenoglio Fowler LP, a JLL company and a Freddie Mac Optigo lender. Ivy Lane is located on the

border of Teaneck and Ber- genfield along Liberty Rd. less than eight miles from Manhattan. The property consists of 17 two-story build- ings that house a mix of 142 one-bedroom, 86 two-bedroom and nine three-bedroom units with an average unit size of 582 s/f. Ivy Lane also includes 227 on-site parking spaces and 102 garages. The borrow- er also owns and operates the adjacent Omni Apartments and both communities have experienced high historical occupancies. Didio and Quinn repre- sented the borrower . “We were very pleased to execute this fixed-rate loan during the current market conditions,” Didio said. “Tow- er Management and Freddie Mac did a great job commit- ting to and closing the loan, and a big thanks to our in- ternal Freddie Mac team for their hard work getting this to the closing table.” MAREJ

INSIDE: Michael Mullin, Integrated Business Systems........................................................................................................................... 10A Robert Rahner, Cost Recovery Solutions LLC........................................................................................................................... 11A Dwight Kay and Chay Lapin, Kay Properties and Investments, LLC..................................................................................12-13A Ryan Williams, WithumSmith+Brown......................................................................................................................................... 14A

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