KeyBank Real Estate Capital Arranges Loan for Mixed-Use, Transit-Oriented Community
DUNELLEN, N.J. (Jan. 17, 2024) — Prism Capital Partners has secured $53.9 million in fixed-rate financing for The Nell, the firm’s mixed-use redevelopment of the former Art Color industrial facility in Dunellen. KeyBank Real Estate Capital, which represented Prism via an exclusive agreement, procured the seven-year loan from New York Life Real Estate Investors.
“We have enjoyed a longstanding relationship with Prism,” said KeyBank’s Rodney Shenman, senior mortgage banker, who led the process along with Greg Halvorson, vice president, Investor Placement. “This was a great opportunity for us to represent first-class local sponsorship for a Class A property that symbolizes a strong beacon of development for Dunellen.” Shenman added that the loan enabled Prism to takeout its construction financing with additional proceeds at closing plus an opportunity to earnout future dollars.
The Nell is located directly across from the Dunellen Train Station at 100 South Washington Avenue. The property’s 252-apartment multifamily component reached full occupancy in late summer, just months after Prism launched leasing.
Prism’s Eugene Diaz, principal partner, noted that The Nell’s success reflects ongoing demand for multifamily in dynamic downtowns. “The opportunity here was to lock in the rate on takeout financing while the property was still in lease-up,” he said. “We are thrilled with the choice of lender and with KeyBank’s success in what has been a turbulent market.”
The Nell’s one- and two-bedroom residences feature nine-foot ceilings, open layouts, luxury plank flooring, chef-inspired kitchens, spa-like bathrooms and in-home washer/dryers. Modern amenities include a clubhouse with a state-of-the-art fitness center, yoga room and community kitchen, as well as an outdoor resort-style pool and a bar with televisions and lounge seating.
The property’s 9,300-square-foot, free-standing retail building offers essential services to both residents and the larger community. Tenants Blue Foundry Bank and Kessler Rehabilitation Center opened for business this fall, with active interest in the remaining retail space, which is ideally suited for uses such as an independent coffeehouse or local convenience store. The Nell also includes 130 for-sale townhouses developed by K. Hovnanian Homes.
Nutley, N.J.-based Prism Capital Partners is an established leader in the redevelopment and adaptive reuse arena. The privately held owner/operator’s current Garden State multifamily projects also include Avenue & Green in Woodbridge, Wonder Lofts in Hoboken and Edison Lofts in West Orange.
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About New York Life Real Estate Investors
New York Life Real Estate Investors is a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company. For more information please visit: www.nylinvestors.com
New York Life Real Estate Investors is a full service, fully-integrated real estate enterprise with more than 180 professionals. The division has market-leading capabilities in origination, underwriting, and investment in real estate equity products and related debt, including real estate equity investments, commercial mortgage loans and commercial mortgage backed securities. With $67.9 billion in assets under management as of September 30, 2023(1) New York Life Real Estate Investors is actively seeking to acquire additional properties throughout the U.S.
(1) Real Estate Investors AUM of $67.9B is gross and includes AUA ($870M) as of 9/30/2023. Net AUM for Real Estate Investors is $67.1B as of 9/30/2023.
About KeyBank Real Estate Capital
KeyBank Real Estate Capital is a leading provider of commercial real estate finance. Its professionals, located across the country, provide a broad range of financing solutions on both a corporate and project basis. The group provides interim and construction financing, permanent mortgages, commercial real estate loan servicing, investment banking and cash management services for virtually all types of income producing commercial real estate. As a Fannie Mae Delegated Underwriter and Servicer, Freddie Mac Program Plus Seller/Servicer and FHA approved mortgagee, KeyBank Real Estate Capital offers a variety of agency financing solutions for multifamily properties, including affordable housing, seniors housing and student housing. KeyBank Real Estate Capital is also one of the nation’s largest and highest rated commercial mortgage servicers.
For more information, visit https://www.key.com/. KeyBank is Member FDIC.