On the heels of the milestone announcement for The Crossings at Brick Church Station – East Orange’s largest-ever real estate development – the project has finalized Phase 1 funding to the tune of $317 million.
Triangle Equities, investment partners Goldman Sachs and Basis Investment Group, and co-developer Incline Capital announced the complex financing package for the mixed-use development coming to 533 Main St. Nov. 30.
With a total price tag pegged at $500 million, the transit-oriented project will include more than 800 mixed-income rental units, a pedestrian promenade, a 1,200-space parking garage and increased surface parking, and 200,000 square feet of commercial space that will be anchored by a new ShopRite.
According to the team behind it, The Crossings at Brick Church Station will be built in two phases.
Breaking it down
The retail and site infrastructure will be financed with:
- a $17 million loan from the Reinvestment Fund in partnership with the Low-Income Investment Fund and BlueHub Capital;
- $15 million of New Markets Tax Credit (NMTC) equity invested by PNC Bank;
- $10.5 million of financing from the NJ Infrastructure Bank;
- $1.65 million Series 2022A Redevelopment Area Bond; and
- $24.6 million in direct equity from the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs), Basis Investment Group, Triangle Equities, and Incline Capital.
The project also benefits from a $52 million NMTC allocation – one of the largest closings in the program’s history, according to the announcement – from eight community development enterprises: PNC Bank, DV Community Investment, Urban Action Community Development, Enterprise Community Partners, New Jersey Community Capital, Local Initiatives Support Corp., Mid-City Community CDE, and the Reinvestment Fund. Dudley Ventures provided NMTC advisory services.
“It’s a privilege to invest in The Crossings,” said NJCC President and CEO Bernel Hall in a statement. “Our investment will create a community hub in East Orange bringing equitable economic and housing opportunities, a necessary addition to the county and its residents.”
The residential portion of the project will be financed with:
- a $63.8 million construction loan from PNC Bank;
- a $24.35 million bridge loan from PNC Bank;
- a $14.6 million LIHTC bridge loan from PNC Bank;
- a $2 million loan from the City of East Orange;
- $24.35 million in Redevelopment Area Bonds issued by the City of East Orange;
- $17.6 million of LIHTC equity invested by PNC Bank; and
- $46 million in direct equity from Goldman Sachs, Basis Investment Group, Triangle Equities, and Incline Capital.
“The Crossings at Brick Church Station is a terrific example of the progress that can be achieved when public and private resources come together to strengthen the economic vitality of our communities,” said Enrico Della Corna, PNC regional president of New Jersey.
The residential portion of the project also benefits from $20 million in Low Income Tax Credits awarded by the NJ Housing & Finance Agency. Additionally, Fannie Mae, through PNC as DUS Lender, offered a forward commitment to provide $88.2 million of Mortgage-Backed Securities at the end of the construction and lease-up period and Stifel Investment Bank sold an equivalent amount of Multifamily Taxable Mortgage-Backed Securities, which are secured by U.S. Treasuries until Fannie Mae delivers the MBS, The Crossings team said.
“Since acquiring the first site in the assemblage, our vision for this project has been to create a development that will not only provide quality fresh foods, restaurants, retail amenities and mixed-income housing to the City of East Orange, but also create a transformative economic and community development project. Upon completion, the Crossings will provide a new focal point for the City of East Orange and catalyze additional investment and economic growth in the City by ensuring that social equity goals are interwoven with the development plan,” said Josh Weingarten, director of capital markets at Triangle Equities. “We are thrilled to work on this transformative project with such great public and private partners.”
In a statement, Michael Lohr, managing director, Goldman Sachs Asset Management, said the firm was excited to be a part of the project.
“The completion of The Crossings will create new jobs and provide affordable housing, an expanded grocery store, and community focused retail including a Federally Qualified Health Center for the City’s residents to utilize,” he said. “We are pleased to invest in the growth and revitalization of East Orange through this transformative transit-oriented development.”