Triangle Equities along with investment partners Goldman Sachs and Basis Investment Group and co-developer partner Incline Capital announced today that they have finalized a complex financing package totaling approximately $317 million to build Phase 1 of The Crossings at Brick Church Station, a new ground-up, transit-oriented mixed-use development in East Orange, N.J.
Located at 533 Main Street, The Crossings will be built in two phases, creating approximately 200,000 square feet of retail, restaurants and commercial space, a pedestrian promenade, 820 mixed-income rental units, a 1,200-space parking garage, and increased surface parking. Anchored by a new Shop Rite supermarket, The Crossings is scheduled to commence construction this November, with completion anticipated in Q4 2024. More than 85% of the retail is already pre-leased.
“I want to thank Governor Murphy, Lt. Governor Oliver, Mayor Ted Green, and City Council President Christopher Awe for their support and for welcoming The Crossings at Brick Church into this great community,” said Lester Petracca, President of Triangle Equities. “We also appreciate the tremendous support that we received from our co-developer Incline Capital and co-sponsors Goldman Sachs and Basis Investment Group, illustrating what it takes to make these challenging projects become a reality.”
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.
In addition, the project benefits significantly from $52 million in NMTC allocation from eight community development enterprises including PNC Bank, DV Community Investment, Urban Action Community Development, Enterprise Community Partners, New Jersey Community Capital, Local Initiatives Support Corporation, Mid-City Community CDE, and the Reinvestment Fund, one of the largest NMTC closings in the program history. NMTC advisory services were provided by Dudley Ventures.
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. “PNC, as a national main street bank, is committed to delivering our expertise and capabilities—from real estate finance to public finance to tax credit solutions—that help advance economic equality and enable all to move forward financially.”
“Congratulations to the City of East Orange and Triangle Equities. This is an important development for the city, and we are excited for its residents and the broader community,” said Peter Czajkowski, the Director of Public Finance at Stifel. “The financing is a credit to the hard work of many different people, and we are very proud of the value we brought to the team.”
The residential portion of the project also benefits from $20 million in Low Income Tax Credits awarded by the NJ Housing & Finance Agency (NJ HMFA). Furthermore, Fannie Mae, through PNC as DUS Lender, provided a forward commitment to provide $88.2 million of MBS at the end of the construction and lease-up period and Stifel Investment Bank sold an equivalent amount of Multifamily Taxable Mortgage-Backed Securities (MTMBS) which are secured by US Treasuries until Fannie Mae delivers the MBS.
“Working closely with our partners, we were able to offer a flexible financing solution to maximize community impact and outcomes,” said Christina Szczepanski, Reinvestment Fund’s Managing Director of Lending and Investments.
“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 & mixed-income housing to the City of Easts 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.”
“We are excited to be a co-sponsor in an ambitious project that seeks to positively impact the East Orange community,” said Michael Lohr, Managing Director, Goldman Sachs Asset Management. “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. We are pleased to invest in the growth and revitalization of East Orange through this transformative transit-oriented development.”
“The Crossings will be transformational with the creation of permanent quality jobs, healthy food, a Federally Qualified Health Center, and bringing much needed affordable and market rate housing located close to public transportation,” said Kyle Koupal, Vice President of Investments at Dudley Ventures. “On behalf of the NMTC CDEs, we are all extremely proud to be involved.”
“It’s a privilege to invest in The Crossings,” said Bernel Hall, President and CEO of New Jersey Community Capital. “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.”
About Triangle Equities
Triangle Equities is a full-service, real estate development firm that is prepared to tackle and solve the most difficult development challenges. By actively embracing the complexities inherent to responsible urban development, Triangle achieves sustainable results and unlocks substantial value for its investors, tenants, and the communities in which it builds. Visit triangleequities.com for more information.
About the Goldman Sachs Asset Management Urban Investment Group (UIG)
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors, and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate, and infrastructure. Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $10 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.
About Basis Investment Group
Basis Investment Group is a full-service commercial real estate investment platform investing across the capital stack of stabilized, transitional, and development CRE assets throughout the United States. With representation in New York, Chicago, Dallas, Tampa and Irvine, CA, Basis has successfully closed over $5 billion in transactions across multiple strategies and asset classes focusing across the US middle market.
Basis, a certified Minority and Woman-Owned Business (MWOB), focuses primarily on investments in the middle market where it has deep relationships. Basis is a registered investment advisor and lender that invests in both debt and equity strategies including fixed rate senior mortgage loans, bridge loans, mezzanine loans, preferred equity, structured equity, JV equity and B-piece investments. Basis is also the only diverse-owned and licensed Optigo® lender for Freddie Mac. For more information, please visit www.basisinvgroup.com.
PNC Bank
PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit http://www.pnc.com.
About Incline Capital
Incline Capital is a diversified real estate development and investment organization. Incline is structured to grow by selectively identifying opportunities where it can enhance the value of real estate through market cycles. For more information, visit Incline Capital
