Co-developers Triangle Equities and Incline Capital on Monday announced the successful close of a $133.5 million recapitalization for the first phase of The Crossings at Brick Church Station. The financing marks a critical milestone for the mixed-use development, which is set to revitalize the downtown core of East Orange and provide a massive influx of transit-oriented housing and retail.
The recapitalization was spearheaded by a $115 million senior secured bridge loan from affiliates of Fortress Investment Group and $16.5 million in Low Income Housing Tax Credit (LIHTC) equity from Affordable Equity Partners. Additionally, $2 million was secured through the redemption of Redevelopment Area Bonds.
Situated directly adjacent to the historic Brick Church Station, the development offers residents a 25-minute commute to Midtown Manhattan. At full completion, the project will deliver roughly 1,000 new residences and over 200,000 square feet of retail space.
Phase I Highlights:
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Residential: Known as Embark at The Crossings, this phase features 400 mixed-income apartments ranging from studios to three-bedroom units.
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Retail: Anchored by a full-service ShopRite supermarket, the 85,000-square-foot retail component includes the Newark Community Health Center, Dunkin’, Ashley Stewart, Rita’s Italian Ice, and Angel Nails.
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Sustainability: The project is designed to meet EnergyStar, Enterprise Green Communities, and Fitwel One Star certifications.
The complex financing structure involved collaboration between over a dozen public and private entities. The recapitalization builds upon an existing capital stack that includes funding from:
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Basis Investment Group
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The Urban Investment Group at Goldman Sachs Alternatives
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NJ Infrastructure Bank
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NJ Housing & Mortgage Finance Agency (NJ HMFA)
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The City of East Orange
“This investment is more than just an investment in The Crossings; it is an investment in East Orange and the region at large,” Josh Weingarten, executive vice president at Triangle Equities said.
The project addresses a critical need for quality, affordable housing in the region. Of the 400 units in Phase I, approximately 20% (80 units) are designated as affordable housing. This initiative is supported by the LIHTC equity provided by Affordable Equity Partners, aimed at fostering economic mobility and revitalization in the downtown district.
