Weekly Real Estate News
SCALE Lending has provided a $67.5 million construction loan to Capodagli Property Company for the second phase of Meridia Rahway Brownstones, a 200-unit multifamily development in Rahway, New Jersey.
The floating-rate loan has a 30-month term with two six-month extension options. Capodagli will use the financing to retire an existing senior loan and complete construction at 1999 Elizabeth Avenue.
Meridia Construction Management, an affiliate of Capodagli, is serving as general contractor. Completion is expected in November 2028.
Second phase follows a stabilized 298-unit project
Capodagli acquired the site in 2012 and rezoned the property from industrial to multifamily use. The 298-unit first phase was delivered in 2022 and is fully stabilized.
Phase II will contain 200 one- and two-bedroom apartments across approximately 168,500 square feet. Six apartments will be designated affordable under a 30-year payment-in-lieu-of-taxes agreement with the City of Rahway. Plans also call for about 2,000 square feet of ground-floor retail and 493 parking spaces.
The financing adds to a busy year for SCALE, the debt-financing arm of Slate Property Group. The lender said it has originated $880 million in closings during the past 12 months.
Recent transactions include a $460 million cross-collateralized facility for two 43-story multifamily buildings in Miami, a $108 million construction loan for a 17-story project at 770 Second Avenue in Manhattan and a $245 million bridge loan for the 578-unit first phase of Upland Park in Miami.
For the Rahway project, the financing illustrates the continued availability of private construction capital for multifamily developments with an established sponsor and a stabilized first phase, even as higher borrowing costs have made development financing more selective.
