The developer of the former Wheatena property has secured a $31-million loan for the first phase of the 487-unit development, according to a report in Multi-Housing News.
Linden-based Capodagli Property Company will build 172 units as part of the first phase of the project, located along Elizabeth and West Grand avenues. Avison Young secured the construction mortgage from Sterling National Bank, formerly Astoria Bank, according to the report.
Earth work is ongoing for building subgrade and foundation permits have been obtained for the project, Engineer Jacqueline Dirmann told the Redevelopment Agency at its May 2 regular, public meeting.
The Payment In Lieu Of Taxes (PILOT) application, approved by City Council in August 2014, indicates that the $49.75 million development will be funded 75 percent, or $37.3 million, by a debt-first mortgage loan, and 25 percent equity, approximately $12.4 million.
Capodagli acquired the roughly 6.7 acres among nine lots for $4.7 million in 2015. The property successfully won tax appeals for 2011 through 2014 at almost 11 percent. In all, the lots previously were assessed for $2,253,600, generating a property tax bill of almost $140,000. The buildings on the property were demolished over the course of several months in 2015.
City Council approved a 30-year PILOT for The Brownstones in August 2014 and the Planning Board approved preliminary and final site plans in December 2014. Remediation of the property also will be necessary, which Capodagli did not seek state brownfields development funding for fear that it could potentially delay the project.
The Brownstones will include four buildings in all, each with about 120 units and expected to be built in four phases. Typically, Capodagli projects consist of about 65 percent two-bedroom units, which would amount to about 318 two-bedrooms, leaving about 171 one-bedrooms. There will be about 542 parking spaces.
Capodagli also is the developer behind 108-unit Meridia Water’s Edge, which it built and then sold for $29.3 million almost two years ago; 88-unit Meridia Grand on East Grand Avenue, which sold for $19 million in late 2011, and most recently completed the 115-unit Meridia Lafayette Village on the corner of Monroe and Main streets.