Chicago, IL (May 12, 2023) – Pearlmark announced that it closed on a $10 million mezzanine debt investment to refinance Vinty Apartments in Elizabeth, New Jersey. Vinty Apartments is a five-story, 267-unit multifamily property with approximately 32,000 square feet of ground-floor commercial space.
The investment was made on behalf of Pearlmark Mezzanine Realty Partners V, L.P. An entity managed by Argentic provided the senior loan. Michael Klein and Steven Klein, with JLL, represented LeCesse Development Corporation and MAS Development Group (collectively, “Sponsorship”), in the recapitalization.
The property is adjacent to the Elizabeth train station, which provides easy access to New York City’s Penn Station. Vinty Apartments is located in an Opportunity Zone and is the first part of a four-phase development project. Phase I construction has been completed and the apartments are currently 85% leased with the commercial space 68% leased. Sponsorship plans to lease up the remaining multifamily units and the remaining commercial space before developing the three additional sites.
Steve Gordon, Managing Director of Pearlmark, arranged the transaction for Pearlmark. Mr. Gordon commented, “We are excited to be a lending partner in this transaction that brings Class A apartments to Elizabeth. Additionally, the commercial space will offer co-working, dining, and other essential retail that will enhance the live-work-play experience for the local community.”
Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, further commented, “Pearlmark is thrilled to back such strong sponsorship in a partnership that combines the local sharpshooter expertise of MAS with the national development experience of LeCesse.”
Pearlmark is a Chicago-based investment firm that targets domestic core to value-add real estate opportunities via commingled funds, separate accounts, and joint venture structures. Since 1996, Pearlmark has sponsored more than a dozen real estate equity and debt investment programs and completed 571 real estate equity and debt transactions on behalf of investors, representing $5.6 billion in equity capital commitments and $13.9 billion in gross investment value. In credit, Pearlmark has now originated 149 loans aggregating $2 billion in commitments. Pearlmark is dedicated to creating value for its investors and offers a range of investment opportunities nationwide across various property types (office, industrial, multifamily). For more information, please visit https://www.pearlmark.com.
Argentic is a manager of commercial real estate lending and investment vehicles focused on providing fixed-rate and floating-rate debt financing solutions to property owners throughout the United States.