Debt financing and joint venture equity secured by Walker & Dunlop for a multifamily conversion project in Long Branch, NJ.
Betteridge, MD - Walker & Dunlop, Inc., a renowned commercial real estate finance and advisory firm, announced today that it arranged a comprehensive financing package totaling $121.5 million for the acquisition of Ocean Gate, a recently constructed, luxurious Class-A apartment community with 170 units in Long Branch, New Jersey.
Walker & Dunlop Capital Markets, led by Aaron Appel, Jonathan Schwartz, Keith Kurland, Mo Beler, Adam Schwartz, Ari Hirt, Jackson Irwin, and Stanley Cayre, served as an exclusive advisor to Lincoln Equities Group. They raised $46.5 million in joint venture equity from RWN Real Estate Partners and Avenue Realty Capital, while TPG Real Estate Credit provided $75 million in debt financing for the deal.
"We are delighted to partner with Walker & Dunlop, Avenue Realty Capital, and TPG Real Estate Credit on this strategic acquisition, which has the potential to unlock substantial value in this unique New Jersey asset," said Ari Shalam, managing partner of RWN Real Estate Partners. "By working closely with the Walker & Dunlop Capital Markets team, we were able to navigate a complex transaction involving both equity and debt, and we're eager to explore future opportunities together."
Ocean Gate is a purpose-built condominium currently operating as a rental community with strong potential for conversion to for-sale units. Lincoln Equities Group, headed by Joel and Lance Bergstein, plans to begin preparing and marketing the units for sale.
"The opportunity to deliver a brand-new, Class-A residential condominium community within a stone's throw of the beach, without the need for development risk, is extraordinarily rare," said Lance Bergstein, president of Lincoln Equities Group. "We're thrilled to work with the teams at Walker & Dunlop, RWN Real Estate Partners, Avenue Realty Capital, and TPG Real Estate Credit to complete this successful transaction."
Ocean Gate, completed in December 2023, features high-quality one-, two-, and three-bedroom units with premium finishes, such as nine-foot ceilings, plank flooring, custom closets, and modern kitchens. Strategically located on 11.63 acres along Ocean Avenue, the property offers direct beach access and is close to shopping centers, upscale amenities, and Pier Village, a recently updated shopping and dining destination. Resort-style amenities include a 16,000 square-foot clubhouse, heated pool, Tiki bar, fitness center, pickleball courts, and beach volleyball. Location provides easy access to New York City and Newark.
"Ocean Gate is poised to capitalize on the regional market's supply and demand imbalance, driven by robust local demand and limited for-sale inventory, as evidenced by the impressive sales velocity of existing condominium projects," said Mo Beler, senior managing director of New York Capital Markets at Walker & Dunlop.
In 2024, Walker & Dunlop's Capital Markets team sourced over $16 billion from non-Agency capital providers. Their extensive experience positions them as a top advisor on all asset classes for numerous industry leaders. To learn more about Walker & Dunlop's diverse financing options, visit our website.
Established in 1999, Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and abroad. The firm's innovative team, comprehensive brand, and advanced technological capabilities make it one of the most insightful and client-focused firms in the real estate industry.
For investor inquiries, contact Kelsey Duffey at (301) 202-3207 or [email protected]. For media inquiries, contact Nina H. von Waldegg at (301) 564-3291 or [email protected].
Phone (301) 215-55007272 Wisconsin Avenue, Suite 1300Bethesda, Maryland 20814
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- Mo Beler, senior managing director of New York Capital Markets at Walker & Dunlop, commented on Ocean Gate's potential to capitalize on the regional market's supply and demand imbalance.
- News about the $121.5 million financing deal for Ocean Gate, a luxury apartment community, was reported by various financial news sources, including CNBC and Bloomberg.
- In the real estate finance industry, partnerships and collaborations are key to navigating complex transactions, as exemplified by the partnership between Lincoln Equities Group, RWN Real Estate Partners, Avenue Realty Capital, TPG Real Estate Credit, and Walker & Dunlop in the Ocean Gate deal.
