Lightstone Capital just handed over $29.5 million to fund a luxury apartment building in Orange, New Jersey, and the money is flowing fast. While New York City renters get squeezed by sky-high rents and safety concerns, developers are spotting a massive opportunity just across the border. This new loan for The Lincoln at 407 Highland Avenue signals that the market is shifting, and investors are ready to cash in on the exodus from the five boroughs.
Orange and East Orange have become hot spots for high-end living as people get priced out of Manhattan and the Bronx. The five-story building just got its final certificate of occupancy in September and is already leasing one- and two-bedroom units. Lightstone stepped in to refinance the project’s previous construction loan and help the sponsor stabilize the asset. It is a clear bet that renters will keep moving west for a better deal.
Deals Move When Investors Trust the Sponsor
This transaction wasn’t just about throwing cash at a building; it was about backing a team with a proven track record. Daniel Cohen of Ackman-Ziff advised on the deal and praised the developers for their work. He told Commercial Observer, “Peek Properties is a best-in-class sponsor, and Lightstone executed flawlessly on this pre-stabilization bridge loan, which allowed Peek to repatriate equity early in the leasing process.”
Peek Capital, a division of PEEK Properties, had previously secured a $20.5 million loan from Amboy Bank in 2024. Now, with Lightstone’s $29.5 million bridge loan, the 102-unit project can move forward without waiting for long-term financing to kick in. Eugene Rozovsky, a senior managing director at Lightstone Capital, noted that these types of deals are rare but rewarding when the backing is solid. He said, “Newly built multifamily properties with proven sponsorship track records have always presented attractive lending opportunities as they transition towards stabilization.”
Why Orange Is the New Target for NYC Renters
The location is a major selling point for this specific project. The building sits just one block away from the N.J. Transit Highland Avenue station, giving residents a direct shot to Newark and Midtown Manhattan’s Pennsylvania Station. Philip J. Evanski, managing partner of Peek Capital, sees this as a win for everyone involved. He stated, “The Lincoln continues to attract strong interest from prospective residents, and this refinancing marks an important milestone in the life cycle of the property.”
Developers are betting that the demand for safe, convenient housing near transit lines will keep growing. As long as New York City struggles with its own housing crisis, towns like Orange will continue to see an influx of capital. The deal shows that private money is willing to step in where public infrastructure might lag, provided the location and sponsor check the right boxes.
For now, the focus is on getting these units leased and the building fully stabilized. The money from Lightstone allows Peek to pay off its old debt and keep the construction and leasing momentum going. If the market holds, this could be the first of many similar deals in the area as the gap between NYC and suburban New Jersey widens.
This is opinion and commentary from the RapForMayor team.
