$32.45M financing secured for New Jersey multi-housing development

MORRISTOWN, N.J., Oct. 6, 2022 – JLL Capital Markets announced today that it has arranged $32.45 million in construction financing for The Rail at Bound Brook, a to-be-constructed, 143-unit, mid-rise, transit-oriented, Class A apartment community located within an Opportunity Zone in Bound Brook, New Jersey.

JLL represented the sponsorship, a joint-venture between Denholtz Properties and Redwood Real Estate Group, to secure a three-year, floating-rate loan through Citizens.

The six-story The Rail at Bound Brook will feature studio, one- and two-bedroom floorplans with designer kitchens, large windows, walk-in closets, nine-foot ceilings, stainless steel appliances, in-unit full-size washers and dryers, balconies and large terraces in select units and an average size of 811 square feet. Community amenities will include a large lobby, a resort-style furnished courtyard with lounge areas, an upscale 4,030-square-foot club suite, a game room, yoga studio, a co-working space and garage parking. Additionally, the property will offer 650 square feet of retail space and 149 parking spaces.

Located at 100 Hamilton Street within Somerset County, the site is in downtown Bound Brook across the street from the Bound Brook Train Station, adjacent to the Brooks Art Center and proximate to numerous shops and restaurants. The community will offer exceptional access to Central and Northern New Jersey via nearby highways, including I-287, I-78 and Route 22. Additionally, the site is approximately 34 miles west of New York City and is walkable to commuter rail service to Manhattan. The Rail at Bound Brook’s location is further enhanced with downtown’s designation as a Transit Village by the New Jersey Department of Transportation (“NJDOT”).

The JLL Capital Markets team representing the seller was led by Senior Managing Directors Michael Klein and Jon Mikula and Vice President Michael Lachs.

“Bound Brook has experienced a resurgence of new multi-housing development as demand continues to outweigh supply. The Rail at Bound Brook will provide best-in-class amenities and luxury,” said Mikula.

“JLL is pleased to have secured construction financing for the sponsorship.  This is a transformational project for the market, and we look forward to watching the development progress,” added Klein.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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