NEW MILFORD, NJ—Berkadia has secured a $40 million loan for the refinancing of Brookchester Apartments, a 752-unit garden style multifamily community in New Milford, NJ. Senior managing director Charles Foschini and managing director Christopher Apone of Berkadia’s South Florida office arranged the loan on behalf of the borrower, Bal Bay Realty.
Berkadia is a joint venture of Berkshire Hathaway and Leucadia National Corporation.
Voya Investment Management originated the loan, including a 15-year term with an aggressive interest rate and LTV ratio of 35 percent. The occupancy rate was 98.27 percent at the time of refinancing.
“As competition in the lending market increases, we were able to secure a refinance loan that offered a compelling structure to the borrower, taking advantage of the substantial debt capital in the marketplace,” says Foschini.
“Utilizing the strength of our correspondent relationship with Voya and taking advantage of a flat yield curve, we were able to structure a fixed rate loan with a very aggressive interest rate on a long term basis which will provide the borrower with exceptional cash flow for years to come,” says Apone.
Built in 1948, Brookchester Apartments, 915A River Road, New Milford, NJ, is in the New York-Northern New Jersey-Long Island MSA. Situated about 20 minutes away from New York City, the multifamily asset is near educational, shopping, and medical centers, including Fairleigh Dickinson University, The Outlets at Bergen Town Center, and Holy Name Medical Center.
Brookchester Apartments features studios, one-, and two-bedroom units throughout 47 two-story buildings. Units include heating and air conditioning, new kitchen cabinets and appliances, thermal insulated windows, hardwood floors, and high-speed internet access. Community amenities include newly renovated on-site laundry facilities, 24-hour emergency maintenance, business center, courtyard, and barbeque grills with picnic tables.