Jones Lang LaSalle

Owners Secure $28M in Financings
By Eric Peterson
Last updated: February 16, 2006 02:51pm

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FLORHAM PARK, NJ-The ownership of Beacon Gardens, a 108-unit multifamily property in Point Pleasant Beach, has secured a $17.08-million, floating-rate loan through Bank of America Commercial Real Estate. The Hampshire Cos. of Morristown, NJ won a $11.4 million, 10-year, fixed-rate loan secured by its 165 and 205 Chubb Ave. buildings in Lyndhurst.

Both financings were arranged by the local office of Holliday Fenoglio Fowler. In the Beacon Garden’s transaction, the firm’s senior managing director Tom Didio arranged the deal for owner Tower Management Service of River Edge, NJ, which is using the funding to convert the rental property to condos.

“The borrower recently converted another rental property in New Jersey into condos and experienced great success,” Didio says. “Beacon Gardens should see a similar result once renovations are under way and the sell-out process begins.”

Beacon Gardens is situated on a seven-acre parcel one block from the Atlantic Ocean. The conversion process, which will include unit upgrades and common area improvements, will take place over a 12- to 24-month period.

In the second transaction, HFF senior managing director Jon Mikula arranged the package for Hampshire. The deal was a “refinancing to take advantage of today’s capital market.”

Located on 14.25 acres within the Meadowlands Corporate Center, the single-story buildings include a mix of office and warehouse space. 165 Chubb is currently 82.8% leased, and 205 Chubb is 95.6% leased. The funding was provided by CIBC World Markets.