Hot Delaware Market Gets the Meridian Touch

Meridian Capital Group has negotiated a refinancing for a mixed-use property.
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The Residences at Justison Landing, Wilmington, Del.

By Gail Kalinoski, Contributing Editor

Meridian Capital Group negotiated a deal for The Buccini/Pollin Group to refinance its mortgage on The Residences at Justison Landing, a 214-unit multi-family and retail property in Wilmington, Del.

The amount of the seven-year loan was not released by Meridian Capital or the property owner. Provided by a regional lender, the loan features a fixed-rate of 3.38 percent, two years of interest-only payments and a five-year extension option, according to a prepared statement.

The transaction was negotiated by Meridian Managing Director Tal Bar-Or and Vice President Judah Neuman, both based in the company’s New York City headquarters.

“We are pleased to have worked with The Buccini/Pollin Group to refinance The Residences at Justison Landing with a specifically tailored and highly favorable loan from a leading-lender relationship of Meridian,” Baro-Or said in the statement. “The institutional quality of the property coupled with the superior sponsorship helped Meridian achieve strong terms and foster a new relationship between the client and lender.”

The Residences at Justison Landing, located at 331 Justison St. in Wilmington, was built in 2009. In addition to the apartments, it has 19,400 square feet of retail space. The property is close to downtown Wilmington’s restaurants, the Riverfront Market, a three-mile river walk and cultural and recreational attractions. Located within walking distance to the Amtrak station, it is also about a half-mile from Interstate 95.

The Buccini/Pollin Group, a privately-held, full-service real estate acquisition, development and management company with offices in Wilmington, Washington, D.C., Baltimore, Philadelphia and New York City, develops and acquires hotel, office, residential and retail properties in the Mid-Atlantic and Northeast. The firm has been active in Wilmington’s strong multi-family market and in May announced it was breaking ground this summer on a new luxury apartment complex called The Residences at Midtown Park. Located in the city’s downtown area, it will have 231 high-end apartments aimed at Millennials. Integra Realty Resources in Wilmington noted in its 2015 Mid-Year Viewpoint market report that The Buccini/Pollin Group had also completed construction of Harlan Flats with 116 units in the Riverfront urban submarket earlier this year and was expected to complete 74 units on Market Street in the second half of 2015.

The Buccini/Pollin Group is one of several developers who are contributing new units to the city which has seen the multi-family vacancy trend downward to below 5 percent, according to the Integra Realty Resources report.

For Meridian Capital Group, the nation’s most active debt broker and a leading commercial real estate finance advisory firm, the Wilmington transaction is one of at least eight multi-family deals totaling more than $267 million the firm has announced in July. Most were in New York City or the metropolitan region but two others were located in Washington, D.C., and Brandon, Fla. The two largest transactions were announced July 14. Meridian Vice President Judah Hammer and Managing Director Zev Karpel, both of the firm’s New York City office, arranged $52.8 million in acquisition financing for Greenbrook Gardens, a 35-building, 407-unit property in North Plainfield, N.J. Senior Vice President Barry Lefkowitz, based in the firm’s Iselin, N.J., office negotiated $43 million in permanent financing for the Clinton Towers, three 16-story towers with 456 units in the Bronx.

In 2014, Meridian closed 3,480 loans totaling more than $30 billion in transaction volume with 175 lenders. The firm, founded in 1991, has offices in New York City, New Jersey, Maryland, Illinois, Florida and California.