CDK Lending has closed a $36.7 million pre-development loan for RBH Group's Newark apartment project. The financing supports construction of a 420-unit residential tower with ground-floor retail at 101 Market Street in the Four Corners neighborhood, near downtown Newark.
Pre-development funding covers design, permitting, and early-stage costs before construction begins. CDK Lending's backing signals confidence in the project's feasibility and the Newark market's recovery. The deal replaces an earlier loan, indicating RBH Group refined its financing structure as the project advanced.
For Newark, this represents continued private investment in downtown residential development. The Four Corners location sits at a critical transit node and near commercial anchors, making it attractive for multifamily density. A 420-unit complex adds meaningful housing stock to a market where transit-oriented apartments command premiums over suburban alternatives.
RBH Group brings execution capability to the deal. The developer has demonstrated track records in New Jersey multifamily construction. Ground-floor retail activates the street and creates cross-subsidies that improve project economics. The retail component also strengthens neighborhood retail corridors.
For equity investors in RBH Group's deal, pre-development loans typically carry rates between 8 and 11 percent, depending on risk profile and sponsor strength. Once construction begins, the developer will secure construction financing at separate terms, often from traditional lenders or construction specialists. Permanent financing follows lease-up.
For future renters, the project eventually delivers market-rate apartments in an increasingly expensive Northeast corridor. Newark apartments typically rent 20 to 30 percent below comparable Manhattan units while offering PATH train access to Hudson County and Manhattan.
CDK Lending's participation indicates the lending market remains open for well-sponsored multifamily projects in secondary markets with growth tailwinds. Newark's population stabilization, corporate relocations