14C — March 29 - April 11, 2013 — The Best of 2012 — Mid Atlantic Real Estate Journal www.marejournal.com The Largest MultifamilyAcquisition/Lease of 2012 Solomon Organization Kensington Club Lancaster, PA — 711,000 sf — Mack-Cali Realty Roseland Properties — 212,000 SF/35,400 SF 736,000 SF — Beech Street Capital The Gotham Jersey City, NJ — 269,827 sf —
Marbella in Jersey City, NJ
Kensington Club
The Gotham, Jersey City
In May 2012, The Solomon Organization acquired the 517-unit Hershey Heritage Village in Lancaster, PA, bringing the company’s holdings in the Lancaster market to more than 1,200 units at six properties. It renamed the development Kensington Club, and imme- diately embarked on a $6.5M renovation to the 711,000 square foot property which consists of one-, two- and three-bedroom luxury apartments and townhomes, an 8,500 square foot clubhouse, tennis courts and the larg- est pool in Lancaster County on 45 acres of land. By August, renovations to the clubhouse were completed, and the building now features a fitness center, media room, game room and lounge area. Additionally, The Solomon Organization continues to renovate the units with new kitchens, bathrooms and fixtures, as they become available.
Size: 212,000 s/f/35,400 s/f/736,000 s/f This acquisition of the real estate development and man- agement businesses of Roseland Partners, LLC, a premier multi-family residential community developer and opera- tor in the Northeast and it’s interests, marks a fundamental step in a strategic diversification for Mack-Cali wherein multi-family residential will be a key component of our growth strategy. We are poised to capitalize on the many opportunities for growth resulting from this transforma- tional transaction. Roseland will enhance our opportunities to deploy capital across a strategically positioned portfolio with an integrated platform to address all elements of the real estate development process.
220-unit, 22-story high-rise apartment building; 269,827 s/f. Broker: Brian Sykes, Senior VP, Originations The borrower sought a cash-out refinance of The Gotham to invest in other development opportunities and take advan- tage of historically low rates. The challenge was securing a loan that was large enough to compensate for the substantial prepayment penalty on its existing loan. In addition, the property was subject to a payment in lieu of taxes (PILOT) agreement with Jersey City, which expired in 2020. This agreement would make underwriting especially complicated but the Beech Street team was undaunted. Working closely with Fannie Mae, Beech Street secured approval for a $70 million loan, meeting the borrower’s cash-out requirements, and scoured the capital markets for terms that lowered inter- est payments by approximately 80 bps. Altogether, it closed the loan on the property in less than 45 days.
www.solomonorg.com
The Solomon Organization offers luxury living at affordable prices to renters in Pennsylvania, New York, New Jersey and Connecticut. Pictured here are the exterior, fitness center, game room, movie room and club room as well as the outdoor pool at Kensington Club in Lancaster, PA.
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