LCOR, Madison Secure $87M in Financing for NJ Property
The joint venture received a seven-year, floating-rate loan from PGIM Real Estate.
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LCOR Inc and Madison International Realty have received $87.1 million in financing for Valley and Bloom, a mixed-use community in Montclair, New Jersey. JLL arranged the seven-year, floating-rate loan through PGIM Real Estate.
LCOR Inc co-developed the property with The Pinnacle Cos. and delivered it in 2016, according to The Montclair Dispatch, a local news outlet. Valley and Bloom encompasses 258 residential units, 19,812 square feet of office space, and 19,921 square feet of retail across two buildings. The office component is currently occupied by Regus Corp. and Sotheby’s International Realty, while retail tenants include Cycle Bar, AT&T, and Hand and Stone, among others.
The multifamily segment includes a mix of studio, one-, two-, and three-bedroom units, and residents have access to amenities such as fitness centers, rooftop terraces with barbecue grills, courtyard lounge areas, and indoor bicycle storage.
Transit-Oriented Development
Located at 34 Valley Road, the property is a transit-oriented development, roughly 1 mile from Walnut Street Station and Bay Station, with direct service to Midtown Manhattan. The community is also within Montclair’s main business district and provides access to nearby major thoroughfares, including Garden State Parkway, Route 23, and interstates 280 and 80.
Amid current market conditions dictated by high inflation and interest rate hikes, the multifamily sector continues to be a favored asset class by investors and lenders. Luxury and transit-oriented communities are usually in high demand, making them a solid investment option, according to Jon Mikula, senior managing director at JLL.
Related Questions
What is LCOR's role in the financing of the NJ property?
LCOR is a real estate development and investment firm that secured $87 million in financing for a transit-oriented development located at 34 Valley Road in New Jersey. The financing was provided by Madison Realty Capital, a real estate private equity firm. LCOR is the developer of the property, which is located roughly 1 mile from Walnut Street Station and Bay Station, with direct service to Midtown Manhattan. The community is also within Montclair’s main business district and provides access to nearby major thoroughfares, including Garden State Parkway, Route 23, and interstates 280 and 80. Source
What type of financing did Madison Secure for the NJ property?
I don't know.
How much financing did Madison Secure for the NJ property?
Madison Secure $87M in Financing for the NJ property. Source
What are the terms of the financing for the NJ property?
The terms of the financing for the NJ property depend on the type of loan you choose. Apartment.loans offers apartment loans with terms and amortizations of up to 30 years, with recourse and non-recourse options, and flexibility when it comes to prepayment. New Jersey apartment building loans typically close within 45 days of application.
We work with opportunities like:
- Conventional apartment loans
- Fannie Mae apartment financing
- Freddie Mac apartment financing
- FHA/HUD financing
- Mezzanine financing
- CMBS loans
- Bridge loans
- Apartment construction loans
Apartment loans from $750,000 and up.
What are the benefits of the financing for the NJ property?
The benefits of financing an apartment property in New Jersey vary depending on the type of loan product you choose. Generally, the benefits of apartment loans in New Jersey include:
- Long-term financing with terms and amortizations of up to 30 years
- Recourse and non-recourse options
- Flexibility when it comes to prepayment
- Streamlined application process with no-cost and no-obligations
- Loans typically close within 45 days of application
For more information on the specific benefits of each loan product, please visit Apartment.loans.
What are the potential risks associated with the financing for the NJ property?
The potential risks associated with financing a New Jersey property depend on the type of loan product you choose. For example, conventional loans typically require a higher down payment and have stricter credit requirements, while FHA/HUD loans may have more lenient credit requirements but require a higher interest rate. Additionally, bridge loans and mezzanine financing may have higher interest rates and shorter terms, which can increase the risk of default. It is important to consider all of these factors when selecting a loan product for your New Jersey property.