It may be cold outside, but Khosla Capital is bringing the heat to Hackensack with a nearly nine-figure refinancing of a luxury residential complex.
CBRE provided Khosla with a $96 million loan to refinance Prospect Place in the New Jersey community, the Commercial Observer reported. The debt is a Freddie Mac-backed loan for the two-building, 360-unit complex at 300-310 Prospect Avenue.
A CBRE team including Judah Hammer, Jason Gaccione and Shawn Rosenthal arranged the financing.
In a statement, Khosla CEO Raman Khosla said the financing “positions us to continue investing in the property and enhancing the resident experience, while ensuring long-term financial stability for the asset.”
Prospect Place is split between two buildings. An 18-story building contains 157 units, while a smaller five-story building has the other 203 units. Amenities at the complex include an outdoor pool, a fitness center, a clubhouse, a resident lounge, a business center, a courtyard and a billiards room.
Khosla acquired the property from Kushner Companies in April 2021 for $114.5 million following a renovation of the complex’s units and amenity spaces.
Hackensack saw a development boom in the years immediately following the pandemic. The downtown area of the municipality, known as “The Sack,” saw a notable influx with more than two dozen projects springing up.
One development plan emerged in 2024 for a 2.7-acre site that could contain as many as 350 units. An amended plan called for ground-floor retail space and 20 parking spots in addition to the multifamily units.
An unnamed developer would be required to pay 1.5 percent of the property’s value in development fees to the city’s affordable housing trust fund.
Money is flowing to other parts of New Jersey’s commercial market, too.
Last month, Ursa Development Group and Fields Grade secured a $150 million permanent loan from Truist Bank to refinance The Devan. The developers had recently completed the 336-unit multifamily complex at 3 New York Avenue in Jersey City.
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