CBRE SECURES $47.5 M IN CONSTRUCTION FINANCING FOR THE PARKWAY LOFTS IN BLOOMFIELD, N.J.
SADDLE BROOK, N.J. (DECEMBER 19, 2011) –James Gunning and Donna Falzarano of CBRE’s Capital Markets’ Debt & Equity Finance group recently secured $47.5 million in construction financing on behalf of Prism Capital Partners, LLC, for The Parkway Lofts at Watsessing Station, a to-be-built, 361-unit multi-family redevelopment of a former loft warehouse building, located at 5 Lawrence Street in Bloomfield, N.J.
U.S. Bank provided the construction financing at a competitive LIBOR-based floating rate, and a three-year term with a single one-year extension.
Built in 1897 by the General Electric Company, the landmark 365,000-square-foot, six-story warehouse property was purchased by Prism in 2005. The developer identified the opportunity to redevelop the site for multi-family, using the full 17-foot floor-to-floor ceiling heights and heavy floor loads to add a penthouse level and a new intermediate second floor. The plan preserves many original architectural features of the building, including 15-foot, quilt-panel windows that accentuate its breathtaking views of New York City to the east and the Watchung Mountains to the west.
The development’s fully-approved Phase I includes the conversion of the warehouse into 361 loft-style apartments and the construction of a three-level parking facility. At build-out, the site will be transformed into a distinctive, high-density residential village also featuring 150 for-sale townhomes, a clubhouse and other lifestyle amenities, which will be built as part of Phase II.
Located adjacent to the Garden State Parkway with extraordinary visibility, The Parkway Lofts will provide residents with immediate access to the parkway as well as high-speed rail service to New York City via the Watsessing Avenue Rail Station, located less than 100 yards from the development. The Parkway Lofts project represents not only a major transformation of an iconic, yet dated, industrial property, but also the rebirth of an entire neighborhood.
“From the start, we recognized the potential of The Parkway Lofts as a signature infill redevelopment—one that will illustrate how adaptive reuse can serve to both preserve our state’s rich history and set the stage for its future,” stated Eugene Diaz, principal partner, Prism Capital Partners, LLC. “We commend CBRE’s Jim Gunning and Donna Falzarano for identifying the right lender for this project, and stewarding the process through to a successful conclusion in a challenging construction loan environment. Our entire team is thrilled to have secured financing through U.S. Bank in a transaction that represents the final step in taking The Parkway Lofts at Watsessing Station from concept to reality.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.