Khosla Capital Secures $96 Million Freddie Mac Financing for North Jersey Residential Hub

Khosla Capital obtains $96 million in financing for Prospect Place in Hackensack, N.J. The 360 unit community maintains high occupancy despite a softening market.

By: AXL Media

Published: Mar 12, 2026, 7:43 AM EDT

Source: https://www.multihousingnews.com/

Financing Structure and Portfolio Strategy

The $96 million loan arranged by CBRE represents a significant capital event for Khosla Capital, which has been aggressively expanding its footprint across New York and New Jersey. This Freddie Mac financing replaces a previous $86 million loan from Flagstar Bank obtained following Khosla’s $114.5 million acquisition of the property from Kushner Cos. in 2021. The transition to agency financing suggests a stabilization of the asset's cash flow and reflects the lender's confidence in Khosla’s management, which also oversees significant holdings in Englewood, N.J., and Westchester County, N.Y.

Asset Composition and Value-Add Enhancements

Prospect Place is a diverse residential complex consisting of an 18 story high-rise tower housing 157 units and a adjacent five story mid-rise building featuring 203 apartments. Since taking ownership, Khosla Capital has implemented a comprehensive renovation program. Upgraded units now feature luxury finishes such as vaulted ceilings, fireplaces, granite countertops, and stainless steel appliances. These capital expenditures have successfully driven revenue growth, with average monthly rents rising from $1,611 in 2022 to the current average of $1,735.

Operational Performance Amid Market Headwinds

According to Yardi Matrix data, Prospect Place remains 96.1 percent occupied, a figure that significantly outperforms the regional Class A vacancy average. This high absorption rate is supported by an extensive amenity package, including an outdoor pool, concierge services, a fitness center with a cardio theater, and a dedicated business center. The property’s ability to maintain near total occupancy while steadily increasing rents highlights its competitive edge in the Hackensack submarket, where proximity to transit and modern lifestyle features remain primary drivers for tenant retention.