The eagle has landed — with a $200 million package to refinance four multifamily properties in the Northeast.
Eagle Rock Properties secured the loan for its 1,300-unit portfolio, the Commercial Observer reported. The breakdown of the individual loans, which come at a precarious time for multifamily property owners across the country, was not immediately available.
The properties covered by fixed-rate loans with full-term interest-only payments were the Ramblewood Village Apartments at 1190 South Church Street in Mount Laurel, New Jersey and the Mid-Island Apartments at 35 Penataquit Avenue in Bay Shore, Long Island.
Along with the loans from Capital One, Eagle Rock also scored a seven-year fixed-rate Freddie Mac loan with full-term interest-only payments for its development at 100 Lambert Way in Freehold, New Jersey, as well as Freddie Mac supplemental loan at 1 Town View Drive in Wappinger Falls, New York.
Meridian Capital Group’s Abe Hirsch and Zev Karpel arranged the loans alongside an in-house team from Capital One, senior vice presidents Todd Phillips and Michael Maidhof.
Eagle Rock has properties across the Northeast, including New York City, Baltimore, Philadelphia, and Washington, D.C. The company is based out of Plainview on Long Island.
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The refinancings come as multifamily owners contend with the imposing wall of maturities closing in on them, putting them at risk of default. From this quarter through the end of 2025, a record number of CMBS multifamily loans are coming due, according to a report from investor Gray Capital.
Nearly $8 billion of these loans are set to mature in October and November alone. Considering the interest rise the Federal Reserve has been bringing on since 2021 to combat inflation, experts anticipate a wave of distress is coming for the sector.
“I think this is going to be the Achilles’ heel of the commercial real estate downturn,” RXR’s Scott Rechler said on The Real Deal’s “Deconstruct” podcast.
— Holden Walter-Warner