Real estate lending platform Lightstone Capital, part of Lightstone Group, has provided a 29.5 million US dollar bridge loan for a recently completed residential development in Orange, in the US state of New Jersey. The borrower is PEEK Capital, a subsidiary of developer and operator PEEK Properties. Named The Lincoln, the multi-family building is located at 407 Highland Avenue and comprises 102 residential units. The transaction was brokered by Daniel Cohen of advisory firm Ackman-Ziff.
The loan supports ongoing leasing and the economic stabilisation of the five-storey, full-block new-build property. At the same time, the bridge facility replaces the original construction loan. In 2024, Peek Properties had secured a 20.5 million US dollar loan from Amboy Bank for the development. According to adviser Daniel Cohen, the swift closing prior to the asset's full stabilisation enabled the developer to return equity early while marketing continues.
Stabilisation and demand in the New York commuter belt
The property received its final certificate of occupancy in September, after which leasing of the one- and two-bedroom flats commenced. Eugene Rozovsky, Senior Managing Director at Lightstone Capital, stated that newly built multi-family properties from experienced developers consistently presented attractive lending opportunities during the transition to full occupancy. Philip J. Evanski, managing partner of Peek Capital and Peek Properties, highlighted sustained strong tenant interest and described the refinancing as a key milestone in the lifecycle of the property.
The location benefits from direct transport links: the building is situated just one block from NJ Transit's Highland Avenue station, which provides regular services to Newark and Pennsylvania Station in Midtown Manhattan. The municipalities of Orange and East Orange have seen brisk construction activity in the prime residential segment for some time, as tenants increasingly seek alternatives to high living costs in New York City.
Activity in the residential sector
For Peek Properties, the project forms part of a broader local pipeline. The company is pursuing six multi-family new-build developments within the Orange municipal area as well as several refurbishment projects in East Orange. With this financing, Lightstone Capital also continues its expansion in the US residential sector, having refinanced the 78-unit Kaya Apartments residential complex in San Diego, California, with a 34 million US dollar loan as recently as July.
