Construction financing has closed for 1999 Elizabeth Avenue, a five-story residential building in Rahway, New Jersey. Designed by Netta Architects and developed by Capodagli Property Company, the structure will span 168,500 square feet and yield 200 rental units in a mix of one- and two-bedroom layouts. The project will also include 2,000 square feet of ground-floor retail space and a two-level, 493-vehicle parking garage.
SCALE Lending, the debt financing arm of Slate Property Group, provided the $67.5 million floating-rate loan, which runs for 30 months with two six-month extension options. The proceeds will retire an existing senior loan on the property and fund completion of the ground-up development. The deal was sourced through a direct relationship with the borrower. Meridia Construction Management, a Capodagli affiliate, will serve as general contractor. Plans presented to the Rahway Redevelopment Agency call for a U-shaped ground floor, with two residential wings running parallel to Elizabeth Avenue above the parking levels. Floors three through five hold the majority of the residential inventory, and eight second-floor units along Elizabeth Avenue will have walk-up entrances from the street. Six units will be reserved for affordable housing under a 30-year PILOT agreement with the City of Rahway.
The financing structure suggests a near-term construction timeline, with the 30-month loan term and extension options aligning with the anticipated November 2028 completion date cited in the lender's announcement. The inclusion of a 493-vehicle parking garage, ground-floor retail, and amenities such as an indoor-outdoor pool, fitness center, yoga room, coworking space, dog wash, bike storage, and a basketball court indicates a market-rate rental product positioned for amenity-driven demand in Rahway. The six affordable units tied to the PILOT agreement reflect a modest public benefit component within an otherwise market-rate development.
What remains unknown is the project's total cost, the interest rate or pricing on the floating-rate loan, and the identity of the prior senior lender being retired. The single source, New York YIMBY, provides no information on leasing velocity, projected rents, or comparable supply in the Rahway submarket. The evidence level is limited to one full-text source, so the financing terms and project details should be treated as reported but not independently corroborated.