Date: March 2018
Location: Rahway, New Jersey
Financing Type: Freddie Mac 15-year permanent loan
Scope: 115 units
Cost-effective housing is not easy to come by in Rahway, New Jersey. Meridia Lafayette Village hit the sweet spot with competitive rents, attractive amenities and a location within easy commuting distance of Manhattan. After it was built in 2017, it leased up quickly, demonstrating the strength of demand in the area.
The sponsor, Capodagli Property Company, took on extensive environmental remediation and constructed a Class A community. With a walkable, small town atmosphere, Meridia is now an attractive neighbor and a boost to the tax base. The property benefitted from a 15-year tax abatement in an urban renewal district.
Capodagli is a full-service real estate development, construction and property management firm. The company’s mission is to revive emerging cities and towns and stimulate their growth and evolution by capturing cost-conscious residents who desire easy access to transit in mixed use town center environments. It has developed, owned and managed more than 2,000 rental apartments valued at more than $500 million.
After several years of exploring the bank’s capabilities, Capodagli turned to PNC Real Estate and Freddie Mac for take-out financing on the newly constructed 115-unit property. The deal was the first for PNC and Capodagli and represented a chance to foster a relationship with long-term potential.
In discussing the transaction, Capodagli’s Head of Capital Markets John Longo noted:
We were pleased with this first deal with PNC
and Freddie Mac. They were able to lock in a favorable rate early and deliver a smooth closing process.