EBSC Lending Arranges $45M Luxury Apartment Construction Loan.

ISELIN, NJ — July 23, 2024 — EBSC Lending has arranged a $45 million construction loan to finance the development of a luxury apartment community with ground-floor retail space in Iselin, New Jersey, a transit-oriented submarket benefiting from strong regional connectivity and sustained residential demand.

The 24-month, non-recourse construction loan features a fixed interest rate, full-term interest-only payments, and two 12-month extension options, providing the sponsor with certainty of capital and execution flexibility throughout construction and stabilization.

Transaction Overview (EBSC Lending).

The development consists of a luxury multifamily apartment community comprising three four-story residential buildings totaling 214 apartment units, with a planned second phase expanding the project to 320 units. The property will include underground and surface-level parking and approximately 9,200 square feet of retail space, supporting a mixed-use residential environment.

Residences will be built with hardwood flooring, granite countertops, and in-unit washers and dryers, while the community will offer a comprehensive amenity package designed to compete with top-tier Class A properties. Planned amenities include a fully equipped fitness center, rooftop terrace, grilling and outdoor gathering areas, catering kitchen with storage, multipurpose rooms, yoga room, pet washing stations, bicycle storage rooms, and an outdoor swimming pool. The property is located minutes from major transportation corridors, including the Garden State Parkway, New Jersey Turnpike, and Routes 1, 9, 18, 27, and 287, and is in close proximity to the Metropark transit station, offering direct commuter access throughout the region.

In structuring the financing, EBSC Lending focused on providing a solution aligned with construction timelines and market conditions at a time when construction lending has become increasingly difficult to obtain. As part of the transaction, Leslie Augustin, Senior Vice President at EBSC Lending, noted that “in a market where construction lending has become more challenging to obtain, we were able to effectively advocate for our client and negotiate a favorable term, including a non recourse and no prepayment penalty.” This approach allowed the sponsor to proceed with development while preserving flexibility and limiting recourse exposure.

Market Context + What It Means.

Northern New Jersey continues to experience strong demand for high-quality rental housing driven by constrained new supply, proximity to employment centers, and access to regional transit infrastructure. Submarkets such as Iselin benefit from commuter accessibility to New York City while offering residents modern housing alternatives outside the urban core.

At the same time, construction financing has tightened significantly, with traditional lenders applying more conservative underwriting standards and limiting non-recourse options. Private construction loans that offer interest-only structures and extension flexibility have become an essential component of the capital stack for sponsors seeking to advance projects despite capital market headwinds.

By delivering a non-recourse construction loan with structured extension options, EBSC Lending enabled the sponsor to move forward with development while maintaining alignment between capital availability, construction execution, and long-term stabilization objectives.

EBSC Lending - Frequently Asked Questions.

What type of loan did EBSC Lending arrange for this project?

EBSC Lending arranged a $45 million non-recourse construction loan with interest-only payments and extension options to support the development of a luxury multifamily and retail community in Iselin, New Jersey.

Why is Iselin, New Jersey an attractive multifamily market?

Iselin offers strong commuter connectivity, access to major highways, and proximity to the Metropark transit station, making it an appealing location for renters seeking modern housing with regional access.

What is the benefit of non-recourse construction financing?

Non-recourse construction loans limit sponsor liability while preserving flexibility during construction and lease-up, particularly in markets where capital constraints and construction costs are elevated.

What types of projects does EBSC Lending finance?

EBSC Lending provides bridge loans, construction loans, and customized private financing solutions for multifamily, mixed-use, and commercial real estate projects nationwide.

Related EBSC Lending Financing Programs

EBSC Lending provides flexible private capital solutions across the United States, including:

• Commercial Bridge Loans – Short-term financing for transitional and stabilized commercial real estate assets

• Ground-Up Construction Loans – Customized construction financing for multifamily and mixed-use developments

• Multifamily Financing – Acquisition, construction, and refinance loans for apartment communities