Berkadia Secures $126.4M Loan to Refinance Two Clinton Park Apartments

Why It Matters

The deal highlights how agency capital is fueling refinancings of high‑occupancy, premium multifamily assets, reducing borrowing costs and supporting continued investment in secondary‑city growth markets.

Key Takeaways

• $126.4M loan refinances 390‑unit luxury tower in New Rochelle.
• Loan is Fannie Mae Near‑Stabilization, 8‑year term, interest‑only.
• Property 93% occupied, ground‑floor retail adds revenue stream.
• Sponsors RXR and Bridge Investment Group secured financing.
• Deal underscores New Rochelle’s pro‑development framework and agency demand.

Pulse Analysis

The refinancing of Two Clinton Park illustrates how agency lenders are capitalizing on the surge in stabilized multifamily assets. Berkadia’s $126.4 million Fannie Mae Near‑Stabilization loan, featuring an eight‑year term with interest‑only payments amortized over 35 years, reflects a broader shift toward longer‑duration, low‑cash‑flow structures that preserve borrower flexibility. Such financing is attractive to owners seeking to lock in favorable rates after construction, while still benefiting from the cash‑flow cushion that interest‑only periods provide. The deal underscores the agency market’s confidence in the post‑pandemic rental boom.

New Rochelle’s downtown corridor has become a magnet for high‑density residential development, driven by strong population growth and a municipal pro‑development framework. The 28‑story Two Clinton Park, completed in 2024, offers 390 luxury apartments and 7,574 sq ft of ground‑floor retail, achieving a 93 % occupancy rate within months of opening. The city’s proximity to Manhattan, robust transit options, and rising household incomes have fueled demand for premium rentals, making the asset an ideal candidate for agency refinancing that leverages its near‑stabilized status.

The involvement of seasoned sponsors RXR and Bridge Investment Group signals confidence in the asset’s long‑term value proposition. By securing a low‑cost, interest‑only structure, the owners can preserve cash for future capital improvements or tenant incentives, enhancing the building’s competitive edge. For investors, the transaction highlights the growing pipeline of stabilized multifamily properties that can be refinanced under favorable agency terms, potentially lowering overall portfolio risk. As more developers target secondary markets like Westchester County, similar financing models are likely to proliferate, reinforcing the agency sector’s pivotal role in supporting urban growth.

Deal Summary

Berkadia arranged a $126.4 million Fannie Mae Near‑Stabilization loan to refinance the Two Clinton Park luxury apartment tower in New Rochelle, NY. The eight‑year, interest‑only loan amortized over 35 years was secured on behalf of sponsors RXR and Bridge Investment Group, with Hudson Realty Capital assisting. The 28‑story property is 93 % occupied.