Capodagli Property Company has secured a $67.5 million construction loan for the development of the second phase of Meridia Rahway Brownstones, a five-storey, 200-unit multifamily complex in Rahway, New Jersey. The financing was provided by SCALE Lending, a Slate Development company, and is structured as a 30-month loan with two six-month extension options. It serves to refinance an existing senior loan and fund the final construction of the development.
No broker was named for this transaction, as the agreement was reached directly between the lender and the sponsor. John Longo, Chief Investment Officer of Capodagli Property Company, stated in a release that Slate Property Group is an exceptional financing partner.
Successful First Phase and Local Ties
Martin Nussbaum, Co-Founder and Principal of Slate Property Group, highlighted that Capodagli completed the first phase of the development – a 298-unit building – back in 2022. He emphasised that the success of the first phase of the Meridia Rahway Brownstones proved what the market was looking for. Nussbaum added that Capodagli's deep local roots and strong track record across New Jersey made the project exactly the kind of venture Scale was designed for.
The site at 1999 Elizabeth Avenue in Rahway, a suburb five miles southwest of Elizabeth in New Jersey's Union County, was originally acquired by Capodagli Property Company in 2012. It was rezoned from an industrial zone to a residential area. The second phase of the development will comprise 200 residential units across 168,500 square feet, with six of these units designated as affordable housing.
Project Details and Amenities
- —Total area second phase: 168,500 square feet
- —Number of residential units second phase: 200
- —Proportion of affordable housing: 6 units
- —Ground floor commercial space: 2,000 square feet
- —Parking spaces: 493
