New York Community Bank (NYCB) and Harbor Group International (HGI) have joined to fulfill a $93 million debt package to Khosla Capital and DKJ Equity to help fund the pair’s purchase of Prospect Place, a luxury residence in Hackensack, N.J.
NYCB gave 10-year, $86 million senior loans, including a 4-year interest-only term, as HGI gave a $7 million loan to round out the financing, which extended at 1% of the cost.
The financing help to get the shared venture’s roughly $114.5 million purchase of the asset from Kushner Companies.
Kushner bought the property for $102.5 million with plans for a full-scale renewal in 2018 from the national multifamily owner Greystar.
NYCB provided a $74 million loan to Kushner in that 2018 deal, now staying on to fund Khosla and DKJ’s purchase.
JLL Capital Market represented Kushner in the sale of the property at 300-310 Prospect Avenue in Hackensack.
The asset sports two adjoining buildings with an 18-story high-rise and a four-story building next to it, which together include 360 one- and two-bedroom units across 428,000 square feet of rentable area.
Current rents at the property range from just over $2,000 for one-bedrooms to north of $4,200 for two-bedroom residences, according to listing information from Apartments.com.
Raman Khosla, CEO, and founder of Khosla Capital is delighted to receive an institutional-quality asset in one of Bergen County’s premier locations and continuing to improve the property, and the living experience for their citizens, and building value for our investors.