CBRE announced that it has secured $35.5 million in permanent financing for The Essex, a recently acquired mixed-use residential property located at 78-102 Washington Avenue in Belleville.
Financing for the newly developed, 158-unit property was provided through the Freddie Mac Lease-Up Program, designed to provide permanent multifamily loans for new multifamily properties that are entering the later stages of lease-up.
The CBRE team of Judah Hammer, executive vice president of CBRE’s New York office, along with Jeff Feldman and Jack Hayes, arranged the financing on behalf of the lender.
“We began to engage with our client regarding permanent financing when the property was still 50% occupied to hit the road running and secure the best terms possible,” said Hammer.
“We worked closely with Freddie Mac in obtaining a seven-year loan with the benefit of four years’ interest-only with an excellent fixed rate of 4.92%. We are thrilled we were able to bring this deal home, providing a win for all parties.”
In addition to the loan, the borrower will also have the benefit of a “borrow-up” provision, allowing them to tap into the cash flow upon stabilization and access additional proceeds and the first mortgage pricing within the first 24 months of initial loan origination. This will allow the sponsor to obtain additional leverage once the building is fully stabilized.
The Essex is a four-story, Class A luxury rental property with two prime retail units on the ground floor. The apartments feature GE washer/dryer, quartz countertops, custom cabinetry, stainless-steel appliances, vinyl plank flooring and 9-foot ceiling heights.
Community amenities include a full-service fitness center with yoga room, rooftop courtyard featuring grilling stations and a fire pit, a resident lounge, game room and coworking pods, secure package room, pet washing station and doorman service, as well as indoor garage parking with EV charging stations.
