Redevelopment of Mixed-Use Facility Project in New Jersey Secures $54M Funding
The development of mixed-use properties in New Jersey has become increasingly popular in the past few years due to the inclusion of houses, residences, and various commercial and retail businesses in one property. Prism Capital Partners, one of this project's real estate developers, recently secured almost $54 million to transform the former New Jersey Industrial hub into a dynamic mixed-use facility.
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Prism Capital Partners
In May 2023, five months after its introduction to the market, this premium residential and retail community of The Nell in Dunellen had already reached the 50% leased milestone. It is located at 100 South Washington Avenue, next to Dunellen's downtown and across from the Dunellen Train Station. Prism Capital Partners are renovating the former Art Color industrial complex.
New York Life Real Estate Investors provided a loan with a fixed interest rate and a term of seven years for the 252-unit The Nell project that Prism is developing in Dunellen, New Jersey. During the transaction, a construction loan from Valley National Bank for $52 million is repaid, and extra funds are allocated for creating a transit-oriented community on the land once occupied by the 400,000-square-foot Art Color industrial project. Accordingly, Rodney Shenman and Greg Halvorson of Keybank (KEY) conducted the deal for the takeout construction loan.
As per Eugene Diaz, the principal partner at Prism, the initial construction loan from Valley was $46 million, but it was boosted by $6 million due to increases in rentals and the value of the property. In addition to 130 townhomes that are now available for purchase, the multifamily section of the property includes units with one and two bedrooms. K. Hovnanian Homes developed these townhomes.
The amenities available to tenants include a swimming pool, a yoga studio, and a fitness facility. Moreover, the Nell property features a free-standing retail structure that spans 9,300 square feet and is leased to Blue Foundry Bank and Kessler Rehabilitation Center. Prism noted that space is also available for lease that can be used for a café or convenience store.
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Mixed-Use Property Trend in New Jersey
Combining several uses on a single parcel of land is called mixed-use development, also referred to as transit-oriented property development. Developers interested in creating vibrant, dynamic areas that cater to various demands have found that transit-oriented properties have been an increasingly popular alternative over the past several years. Retail businesses, residential dwellings, office space, and other commercial and retail spaces are frequently included in its composition. On the other hand, these developments not only create beautiful destinations in their own right but also provide convenience for residents and customers.
Understanding the patterns of transit-oriented property development in New Jersey is more critical than ever as the real estate market develops and changes. Because of the state's urban and suburban settings, there is a growing demand for spaces capable of accommodating various applications. This demand is a direct result of the increasing population of the state as well as the expansion of enterprises inside the state.
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