Scale Lending Provides $75M Bridge Loan for New Jersey Multifamily
The financing is expected to help Capodagli Property Company finish construction and commence leasing
By Brian Pascus August 12, 2024 1:16 pm
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Capodagli Property Company of New Jersey has secured $75 million in bridge financing to retire existing construction debt and commence lease-up for its 294-unit mixed-use development in Little Ferry, N.J.
SCALE Lending, the debt financing subsidiary of Slate Property Group, supplied the loan. It carries an 18-month term, includes the option for two six-month extensions, and is expected to stabilize the property following construction, according to an announcement from the lender Monday
Capodagli previously secured a $71 million construction loan for the project from Scale Lending in November 2021.
“Scale’s formula has proven successful — work with sponsors with strong, local expertise in high-demand locations on best-in-class multifamily projects,” said Daniel Ridloff, managing director of Scale, in a statement. “Capodagli is a best-in-class owner, operator, developer, and we are looking forward to yet another deal together.”
Located at 110 Bergen Turnpike along the Hackensack River in Little Ferry — a suburb 12 miles northwest of Midtown Manhattan — the new, primarily residential development will feature 294 on-site parking spaces to go along with the same number of apartments across two buildings, and approximately 8,356-square-feet of retail space.
It’s unclear how the retail space will be used at this time, but Silber Realty & Management Company has been hired to lease the space. Silber did not return a request for comment on any pending leasing deals.
Martin Nussbaum, co-founder and principal at Slate Property Group, noted in prepared remarks that 110 Bergen Turnpike is “the only active development currently underway in Little Ferry.” The development benefited from a 2020 rezoning that converted the site from commercial into residential, as well as a property tax exemption that set real estate taxes in place at 10 percent to 13 percent of the building’s effective gross income for 30 years following construction.
“We’re continuing to help sponsors meet the residential demand in underserved markets such as Little Ferry, which has demonstrated a strong appetite for multifamily,” said Nussbaum.
This marks yet another New Jersey residential development for Capodagli Property Company, a family-owned firm founded by George Capodagli in 1970. The firm has delivered more than 2,000 residential units to New Jersey in the last 10 years, according to Slate; Capodagli’s affiliate company, Meridia Living, specializes in property management at select properties, including 110 Bergen Ferry.
“The goal at Capodagli Property Company is to provide Class A housing at an affordable price,” said John Longo, chief investment officer and head of capital markets at Capodagli. “Towns like Little Ferry and partners like Scale allow us to see that goal to realization.”
Brian Pascus can be reached at bpascus@commercialobserver.com
