Nutley-based Prism Capital Partners on Wednesday said it secured $53.9 million in fixed-rate financing for the Nell, the firm’s mixed-use redevelopment of the former Art Color industrial facility in Dunellen.
KeyBank Real Estate Capital, which represented Prism via an exclusive agreement, procured the seven-year loan from New York Life Real Estate Investors.
“We have enjoyed a longstanding relationship with Prism,” KeyBank’s Rodney Shenman, senior mortgage banker, who led the process along with Greg Halvorson, vice president, investor placement, said. “This was a great opportunity for us to represent first-class local sponsorship for a Class A property that symbolizes a strong beacon of development for Dunellen.”
Shenman added that the loan enabled Prism to take out its construction financing with additional proceeds at closing, plus an opportunity to earn out future dollars.
The Nell is located directly across from the Dunellen Train Station at 100 S. Washington Ave. The property’s 252-apartment multifamily component reached full occupancy in late summer, just months after Prism launched leasing.
Prism’s Eugene Diaz, principal partner, noted that the Nell’s success reflects ongoing demand for multifamily in dynamic downtowns.
“The opportunity here was to lock in the rate on takeout financing while the property was still in lease-up,” he said. “We are thrilled with the choice of lender and with KeyBank’s success in what has been a turbulent market.”
The Nell’s one- and two-bedroom residences feature 9-foot ceilings, open layouts, luxury plank flooring, chef-inspired kitchens, spa-like bathrooms and in-home washer/dryers. Modern amenities include a clubhouse with a state-of-the-art fitness center, yoga room and community kitchen, as well as an outdoor resort-style pool and a bar with televisions and lounge seating.
The property’s 9,300-square-foot, freestanding retail building offers essential services to both residents and the larger community. Tenants Blue Foundry Bank and Kessler Rehabilitation Center opened for business this fall, with active interest in the remaining retail space, which is ideally suited for uses such as an independent coffeehouse or local convenience store. The Nell also includes 130 for-sale townhouses developed by K. Hovnanian Homes.
