Capodagli Property Co. has landed a $31 million loan to construct the first, 172-unit phase of Meridia Brownstones, a 487-unit planned community in northern New Jersey. Avison Young secured the construction mortgage from Sterling National Bank on the borrower’s behalf. Capodagli acquired the project site in 2015, according to Union County records.
Located on 6.5 acres at 1900 Elizabeth Ave. in Rahway, the development site is positioned three miles from the New Jersey Turnpike, enabling access into Manhattan, 20 miles away. Rahway’s train station operates a short distance away, offering a key transportation link to the rest of the region. The project, initially slated to break ground in 2015, has faced its share of delays surrounding the demolition of the former Wheatena factory and the removal of asbestos contamination from the site, according to Rahway Rising.
Avison Young’s George Gnad brokered the loan on behalf of the developer. In addition to the financing, Capodagli Property Co. is taking advantage of a 30-year payment in lieu of taxes (PILOT) incentive, which the Rahway City Council approved in 2014.
“This is a beautifully designed and well-located multifamily development, and we’re pleased to broker a financing solution to help Capodagli Property Co. with its initial construction of the project,” said Gnad, principal of Avison Young, in a prepared statement. “There is strong interest in this neighborhood among residential tenants and a new offering such as this is poised to take advantage of that market demand.”
Image courtesy of Capodagli Property Co.