Permanent Loan - Refinance
- 16,447 sf Retail Plaza - Phase I
- Somerset, NJ
Axiom Capital has arranged a $5,629,000 permanent loan and a $4,200,000 construction-permanent loan for a two-phase retail plaza in Somerset, NJ. Both loans were made for nine years over a 30 year amortization schedule. The $5.63 million in permanent financing demonstrated a 1.41x Debt Service Coverage at a 70.0% Loan to Value. The $4.20 million construction loan had an initial 18 month interest only period and demonstrated a 52.5% Loan to Cost.
The subject property is a 42,180 SF retail plaza being developed in two phases. Phase I consists of 16,447 SF of recently completed space that is 100% leased. Phase II consists of 25,733 SF of space to-be-built adjacent to Phase I. The plaza is well located in Franklin Township, Somerset County, NJ in the Somerset/I-78 submarket. It is directly across the street from a 67,000 SF freestanding ShopRite and is located just one and a half miles from Exit 10 off Interstate 287. The North Jersey retail market is strong with little new construction coming on line. According to CoStar, as of the first quarter of 2012, the Somerset/I-78 submarket had 2.7 million SF of space with a vacancy factor of just 4.6%. Average rents in the market are quoted at of $24.15 PSF.