Newark Luxury Multifamily Secures Nearly $250M in Financing

Walker & Dunlop, Inc. arranged a comprehensive financing package for the development of 22 Fulton St., a luxury multifamily project located within a Qualified Opportunity Zone in Newark, NJ. Walker & Dunlop Capital Markets Institutional Advisory, led by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Jordan Casella, Michael Ianno and Jackson Irwin, arranged the full financing package on behalf of SK Development and Berger Organization.

The financing included:

• Nearly $119 million provided by the Urban Investment Group at Goldman Sachs Alternatives, including a construction loan, 4% LIHTC equity and LIHTC bridge loan
• $20 million in preferred equity from an institutional lender
• $100-million forward commitment for a permanent loan, provided by an institutional lender

The project leverages multiple government incentive programs, including $90 million in NJ ASPIRE tax credits, which were purchased by Mass Mutual with interim financing provided by Bear Creek Capital. Additional financial benefits include a 30-year Newark Tax PILOT agreement to support the development of the project.

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