$20M First Mortgage Set for Apartment Portfolio

ORANGE, NJ-Coolidge Orange LLC has obtained a $20 million first mortgage for a portfolio of 14 apartment buildings totaling just under 640 units. The funding was arranged by James K. Coleman and Mike Schwartz of Houlihan-Parnes/iCap Realty Advisors, based in White Plains, NY.

The money was provided by a local thrift institution, which was not identified. According to Coleman, the loan was placed for a period of 12 years at a fixed interest rate for the first seven years. The borrower has an option to extend for five years at the end of the initial term. The loan’s other features include a 30-year amortization schedule, a flexible pre-payment schedule and the right to delete part of the collateral from the blanket loan due to release provisions.

Most of the properties in the portfolio are located in this Essex County community just west of Newark: 385, 394 and 411 Park Ave.; 133 and 147 Cleveland St.; 562 and 725 Scotland Rd.; 478 Tremont Ave.; and 421 Lincoln Ave. Three others are located in nearby East Orange: 242 Prospect St. and 106 and 120 South Harrison St. The final property is situated at 818-822 Canton St. in Elizabeth, NJ, in Union County.

The portfolio was acquired by Coolidge Orange, a local investment group, last year after a lengthy foreclosure process, according to Coleman. All of the individual assets have been substantially renovated since then.

For the mortgage transaction itself, the borrower was represented by Andrew W. Albstein and William Brewer of the law firm of Goldberg Weprin & Ustin of New York. The unnamed lender was represented by Annmarie Kearney-Wood of Stark, Amron, Liner & Narotsky, also of New York. The title to the portfolio was insured by First American Title Insurance Co.