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Somerville builder gets $23 million loan for apartments – MYCENTRAL JERSEY.COM

Posted On 11/19/2014

Article published HERE

The developer of a 117-unit apartment building on Veterans Memorial Drive has received a $23.6 million loan for the project. one of several expected to bring new hundreds, if not thousands, of new residents into the Somerset County seat.

Weiss Properties, headquartered in New Brunswick, received the loan from Amboy Bank, based in Old Bridge, for The Cobalt, where site work began earlier this fall.

The site, a vacant lot backed by NJ Transit’s Raritan Valley Line, was once the site of an auto junkyard. In the late 1990s, it was seen as the possible site for a Somerville municipal complex.

“We are excited to be an integral part of Somerville’s growing redevelopment plans” said Robert Weiss, president of Weiss Properties. “The residents of The Cobalt will be able to walk to the New Jersey transit station, Main Street restaurants and the Division Street pedestrian mall.”

The four-story Cobalt Apartments, approved in 2013 by the Planning Board, will have 13 studio apartments (500 to 524 square feet each), 68 one-bedroom apartments (736 to 822 square feet) and 36 two-bedroom apartments (1,070 to 1,087 square feet). All of the units, even the studios, will have washers and dryers. At the rear of the property and not seen from the street will be a parking deck, Weiss has said.

Weiss, who did not disclose rents for the project, said earlier this year that he hopes the project to be completed in 2015.”Somerville’s future is very bright,” Weiss said earlier this year. “It can only get better.”

The Cobalt is part of burgeoning transit-oriented development in Somerville. The apartment complex will be two blocks from the Somerville station of NJ Transit’s Raritan Valley Line.

Next to The Cobalt’s site, DGM Management, which already owns several properties in downtown Somerville, has received conceptual approval for Station House, a 93-unit apartment complex, at 44 Veterans Memorial Drive. The buildings in the site, which once housed an auto body shop and a weekly newspaper publisher, have been demolished. DGM Management has not filed a formal application to develop the property.

In September, NJ Transit, owner of the 35 acres next to the train station, signed a memorandum of understanding with Lakewood-based Somerset Developers for an ambitious project that could eventually result in 675 housing units being built, an investment that Somerville officials could add $300 million to $500 million to the county seat’s property tax base.

Earlier this year, Edgewood Properties opened The Edge at Main, an apartment building on the former site of the Downtown Somerville Mall, a block from the train station.

Weiss Properties, which has developed and managed properties throughout New Jersey for more than two decades, has recently been named the redeveloper of a tract in Willingboro.

“Amboy has been financing commercial real estate for over 125 years and this $23.6 million construction permanent loan represents Amboy’s commitment to financing the redevelopment of New Jersey’s communities,” said Domenick Margiotta, senior vice president and chief lending officer at Amboy Bank.

Staff Writer Mike Deak: 908-243-6607; mdeak@mycentraljersey.com

Eastern Union Brokers $46M Revolving Construction Facility For NJ Townhomes – commercial observer.com

Posted On 5/1/2014

Article published HERE

New Jersey-based residential developer Weiss Properties received a $46.6 million revolving construction loan for The Avery, a townhome community located at 10 Lincoln Square in Willingboro, N.J., Mortgage Observer has exclusively learned.

Shaya Ackerman of Eastern Union Fundingbrokered the $40 million construction construction facility, which features a $6.6 million earn-out, from Investors Bank, confirmed Joseph Orefice, head of commercial real estate lending at the bank. 

Construction will span four phases, and the loan structure allows construction funds to automatically convert to a full permanent loan at the end of each phase. The balance automatically goes into the permanent loan but the conversion is pre-approved for both seven-year and ten-year options. The facility overall has a 30-year term, Mr. Ackerman said.

“It’s pretty much eight loans packaged into one,” Mr. Ackerman said. “For a developer, this is pretty much a dream,” he added, because he or she locks in their interest rate for the long term.

The first phase has an interest rate of 4.5 percent, with the permanent loan portion set at 3.5 percent.

When complete, the development will include 450 units. The homes feature wood plank-style flooring, granite countertops and balconies, and will begin hitting the market this summer, according to the property’s website.

“From the financing end it was double play between Shaya’s structuring abilities and Eastern Union’s great relationship with Investors Bank,” said Eastern Union president Ira Zlotowitz in a statement from Eastern.

“This deal was the natural extension of the initial debt, and with Ackerman’s unique structure we wrapped the remainder of the project into one facility which addresses both construction and permanent financing,” Robert Weiss, the president of Weiss Properties, said in the statement, calling the deal “a custom suit [tailored] on Madison Avenue.”

BY GUELDA VOIEN

Apartment boom fueling Somerville’s revival

Posted On 2/3/2014

Not long ago, you could drive on Main Street in the evening and not see anyone.

Now, Mayor Brian Gallagher said, in the evenings you see people on the street and you can’t find a parking space.

“That’s the way it should be,” Gallagher said. …

Written by
Mike Deak | @MikeDeakMyCJ