Verde Capital Corp., a leading real estate private equity and investment management company, and its joint-venture partners Kushner Real Estate Group and Oxford Realty Group, today announced the $43 million recapitalization of Deer Creek, a 288-unit rental community in Plainsboro, NJ. The refinancing was arranged by Berkadia’s Philadelphia-based capital markets team led by Senior Managing Director Robert Falese.
“The potential we saw in Deer Creek is coming to fruition,” said Jake Reiter, president at Verde Capital Corp. “We worked closely with Robert and his team at Berkadia to create a debt solution that captures untapped value by being able to borrow more incrementally, via a supplemental loan based on final forecasted asset value, as units are renovated and leased at a higher price point.”
Verde, KRE Group, and Oxford acquired Deer Creek in 2016 for $45 million and have executed a capital improvements program to improve the asset’s profitability and enhance tenant quality of life, including the installation of luxury finishes such as granite kitchen countertops, stainless steel appliances and in-unit washer/dryers, in addition to the reconfiguration of several unit layouts and construction of a new fitness center.
“Value-add opportunities such as this one are a part of KRE’s ongoing strategy,” said Jonathan Kushner, President of KRE Group. “We remain bullish on New Jersey’s multifamily rental market.”
Deer Creek, which includes a collection of one- and two-bedroom apartments, is situated on a 34-acre campus just four miles from Route 1, complete with tree-lined streets and manicured lawns that border a wooded section of the Cranbury Brook. The property features an outdoor pool, two tennis courts, the fitness center, a resident shuttle to nearby Princeton Junction train station, and access to a scenic nature trail that winds along the brook and leads to a nearby park.
“The resourcefulness of the borrowers enabled us to structure debt that secured interest rates that are not conventionally available for multifamily properties in the market,” said Falese. “We’re pleased to have worked with such an experienced and savvy ownership team to secure a favorable debt structure for this reinvigorated asset.”
About Verde Capital
Verde Capital is a national real estate private equity firm that provides capital to top-ranked developers and operating partners across multiple asset classes. The firm creates opportunities focused on wealth preservation, value accretion ahead of inflation and recurring cash flow, with a personalized approach that prioritizes the individual goals of its investment partners. The principals of the firm have sourced and structured billions of dollars’ worth of off-market, tax advantaged, direct investments in real estate assets. The firm, which has several billion dollars of assets under management, provides equity and structures debt for development projects, acquisitions and recapitalizations in all asset classes, facilitating maximum asset values and returns for operators and investors. Verde maintains a disciplined strategy and a diversified portfolio of multi-generational investments to mitigate risk, while scrutinizing economic and demographic trends to choose emerging markets in which to invest. For more information, visit www.verdecapitalcorp.com.
About KRE Group
Founded in 1979 by Murray Kushner and Eugene Schenkman, Kushner Real Estate Group is a New Jersey-based real estate development and management company with holdings throughout New Jersey, New York, and Pennsylvania. The company has developed, owns, and manages more than six million square feet of commercial, industrial, and retail property, as well as 9,000 existing apartments with an additional 7,000 apartments in various stages of approvals and construction. With a proven track record of large-scale mixed-use development and a long history of financial relationships with lenders and institutional equity partners, KRE Group is one of the region’s leading real estate developers. For more information visit, www.thekregroup.com.
About Oxford Realty Group
Based in Highland Park, NJ, Oxford Realty Group is a family-owned and operated company that has grown into one of the most prominent leaders in residential development, with more than 50 years of experience in the field.
About Berkadia
New York City-based Berkadia offers a robust suite of services to multifamily and commercial property clients. Through an integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of its clients' assets. Berkadia was formed in 2009 as a joint venture of Berkshire Hathaway and Leucadia National Corporation. For more information, visit berkadia.com.
