Financing large multifamily projects is still feasible in today’s world of stingy lenders, bank failures, high interest rates and flattening rents.
To wit: Malas Development just obtained a $74.2 million construction loan for its project at 329 Alfred Avenue in Teaneck, New Jersey. Bank of America provided the 36-month, interest-only financing, according to Multi-Housing News.
The loan refinances previous debt and has a 7.8 percent interest rate and a loan-to-cost ratio of 0.75, according to Eastern Union. The firm’s Gabriel Sasson arranged the financing.
Malas acquired the site for $9.8 million in fall 2021. The developer is constructing a six-story, 250,000-square-foot complex on the seven-acre site. Of its 256 residential units, 38 will be set aside as affordable housing for 30 years.
Amenities will include a fitness center, swimming pool, community room, game room and business center. There will also be a two-level parking garage with charging stations for electric vehicles.
Malas Building Corporation is the general contractor and CPA Architecture did the design work. Construction is slated for completion in the second half of next year.
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Malas Development, based in Rochelle Park, New Jersey, is run by brothers Zack and Mark Malas. Its other developments include The Marq in Union City and Marquis on the Hudson in Edgewater.
The environment for real estate lending has been challenging but not frozen. In another transaction involving Bank of America, several parties lent $274 million to refinance Tishman Speyer and Silverstein Properties’ 950,000-square-foot Salmon Tower office building in Midtown, one of July’s largest property loans in New York City.
— Holden Walter-Warner