CBRE on Monday announced it successfully secured $35.5 million in permanent financing for the recently acquired mixed-use residential property, The Essex, located at 78-102 Washington Avenue in Bellville. The transaction provides long-term stability for the newly constructed, 158-unit luxury development.
The financing was secured through the Freddie Mac Lease-Up Program, which is specifically designed to provide permanent loans for new multifamily properties that are in the process of stabilizing their occupancy rates. The loan features a seven-year term with four years of interest-only payments at an excellent fixed rate of 4.92%.
The CBRE team, including Judah Hammer, Jeff Feldman and Jack Hayes, began working with the client early in the process, initiating engagement when the property was only 50% occupied to ensure the most favorable terms.
“We are thrilled we were able to bring this deal home, providing a win for all parties,” Hammer said.
A key feature of the deal is a “borrow-up” provision, which allows the borrower to access additional loan proceeds at the same initial mortgage pricing within the first 24 months of origination once the building achieves full stabilization and improved cash flow. This provides a strategic financial option for the sponsor to obtain increased leverage.
The Essex is a four-story, Class A luxury rental property that includes 158 residential units and two prime retail units on the ground floor.
The apartments boast high-end finishes, including:
- Quartz countertops and custom cabinetry
- Stainless steel appliances
- GE washer/dryer units
- Vinyl plank flooring and nine-foot ceiling heights
Community amenities are extensive and cater to a modern lifestyle, featuring:
- A full-service fitness center with a yoga room
- A rooftop courtyard with grilling stations and a fire pit
- Resident lounge, game room, and coworking pods
- Indoor garage parking with EV charging stations
- Secure package room and pet washing station
- Doorman service
