PARQ Builders has received $68.2 million in senior debt and $22.7 million in mezzanine construction financing for a 275-unit multifamily project in Parsippany, N.J. JLL Capital Markets worked on behalf of the borrower to secure the senior floating-rate construction loan through an institutional lender and mezzanine financing from Nationwide Life Insurance Co.
The development, dubbed PARQ, is the first phase of a larger project repurposing the former Lanidex Plaza Office Park near the intersection of interstates 287 and 80. The project will transform the 23-acre site into a mixed-use development encompassing luxury apartments, townhouses, retail space, Class A offices, and athletic fields.
PARQ Builders broke ground on the project this past December, Real Estate New Jersey reported. The next phase of the project will include the demolition of 500,000 square feet of Class B office space to make way for luxury rental properties and Class A offices.
Thanks to its central location in Northern New Jersey, the property offers easy access to New York City and major employment hubs in New Jersey. The development is also near the Route 46 and Route 10 retail corridors and public transit options.
Robust Construction Activity
JLL Capital Markets recently arranged an $88.3 million, 10-year, non-recourse construction-to-permanent loan for Urby and Panepinto Properties for the development of Journal Square Urby, a 317-unit high-rise multifamily project in Jersey City, N.J.
According to a second-quarter outlook from Marcus & Millichap, construction activity will remain high across Northern New Jersey, with roughly 16,000 units expected to come online by year-end, outpacing last year’s total by roughly 5,000 units. While high deliveries will put some pressure on vacancy rates, employees returning to the Tri-State area will likely keep availability down across the region.