Dealmaker: BWE Secures $130M for New Jersey Apartment, Townhome Community

(Property photo courtesy of BWE)

BWE, Cleveland, secured $130 million in first mortgage financing for a newly constructed 520-unit apartment and townhome community in northern New Jersey.

Steve Perricone, senior vice president in BWE’s Philadelphia office, originated the life company financing. The loan features a nine-year fixed-rate term at a 5.22% interest rate.

Perricone noted the rate was secured through a rate lock eight months prior to deal closing, which helped the borrower to lower exposure while still receiving strong proceeds.

“For a large transaction like this, an essential goal for our client was to limit interest rate risk while still getting the pricing and proceeds they needed,” Perricone said. “By working with a life insurance lender who was interested in getting into the pre-stabilized, new construction lending market, we were able to lock in the interest rate during a downdraft in the market and secure a strong deal before the property reached stabilization.”

Located not far from the Rutgers University campus, the property was developed in two phases. The first phase delivered in early 2024 and is currently 99% leased, while the second phase is nearing completion and is undergoing lease up. Property amenities include a fitness center, resident lounge, business center, outdoor in-ground swimming pool, BBQ/firepit area and two dog parks. The community also includes a small percentage of complimentary retail space and 104 affordable units meet the Council on Affordable Housing (COAH) affordable housing requirements.