Capodagli Property Company has secured $67.5 million in construction financing to build the 200-unit second phase of Meridia Rahway Brownstones, a five-story multifamily complex in Rahway, N.J., according to a release.

Slate Development’s SCALE Lending provided the debt, which is structured as a 30-month term with two six-month extension options and will retire an existing senior loan while funding final construction of the development. 

No broker was listed on the transaction, as the deal involved a direct relationship between lender and sponsor.

In a statement, John Longo, chief investment officer of Capodagli Property Company, called Slate Property Group “an exceptional lending partner.”

Martin Nussbaum, co-founder and principal of Slate Property Group, noted that Capodagli delivered the first phase of the development — a 298-unit building  — in 2022 and that “the success of Phase I of Meridia Rahway Brownstones proved out what the market is seeking.” 

“Capodagli’s deep local roots and strong track record across New Jersey made for exactly the kind of project Scale is built for,” he added. 

Located at 1999 Elizabeth Avenue in Rahway, a suburb five miles southwest of Elizabeth in New Jersey’s Union County, the site that has become Meridia Rahway Brownstones was initially acquired by Capodagli Property Company in 2012 and has been rezoned from industrial to residential use. 

The second phase of the development will add 200 units spanning 168,500 square feet, of which six units will be made affordable. The property will also hold 2,000 square feet of ground-floor retail space and 493 parking spaces. 

Brian Pascus can be reached at bpascus@commercialobserver.com.