As part of our broader strategy to finance the development of homes in fast-growing areas around the country, we’ve invested $3.75 million in the construction of a 235-unit apartment complex in Hackensack, New Jersey, just outside of New York City.
Business plan
The project’s sponsor, Waypoint Residential, is expected to break ground on the property this fall, with an expected completion date in mid-2020. Plans for the apartment complex include luxury in-unit finishes, a heated pool, grills, a fitness center, and dog friendly amenities, including a dog park and pet washing area.
Why we invested
- Attractive margin of safety: The borrower, Waypoint, has over $20 million in equity invested junior to our position. Waypoint would need to lose their entire investment before our capital would become compromised.
- Strong relationship with experienced developer: Through the successful management of six other similar projects with the sponsor, Waypoint Residential, we have created a strong partnership, and feel confident in their ability to execute on the construction of this apartment community. Construction of one of our first investments with them — Estraya at Falcon Pointe Apartments — has recently completed. Check out photos of the new apartments here.
- Close proximity to New York City: Only about 15 miles northwest, New York is easily accessible by car or public transit. Almost 675,000 jobs have been created in the greater New York area over the past five years, the most in the nation. Most homes in the city are out of reach for this labor force, resulting in 65% of the population choosing to rent over own a home, compared to the national average of 36%.
