Capodagli Property Co. Secures $31 million loan for Meridia Brownstones in Rahway, NJ

RAHWAY, NJ -- Capodagli Property Co. has secured a loan for $31 million USD to construct the first phase of Meridia Brownstones. Though the initial phase will comprise 172 units, Meridia Brownstones will feature 487 unit at full build-out. The planned community in northern New Jersey will cover 6.5 acres and be located at 1900 Elizabeth Ave (three miles from the New Jersey Turnpike and twenty miles from Manhattan). Avison Young negotiated the loan in the form of a construction mortgage with Sterling National Bank, taking advantage of a 30-year payment in lieu of taxes (PILOT) incentive approved by the municipality in 2014. According to Union County records, Capodagli Property co. received zoning approval for the project in 2014 and acquired the project site in 2015, with plans to commence first construction before 2016. However, Capodagli had to pump the breaks on their plans. Rahway Rising first reported that this was due to hurdles such as the former Wheatena factory being demolished as well as the removal of asbestos contamination. More recently, the city of Rahway approved a deferred payment schedule for Meridia Brownstones' water and sewer connections fees. “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 George Gnad, principal of Avison Young, and broker of the deal in a prepared statement. “There is strong interest in this…