Financing Arranged for Plainfield Development Project
Brad Domenico and Eddie Miro of Progress Capital secured a $17,680,000 construction loan for Eyal Gagin and Abraham Gagin of West of Hudson Properties to develop a 5-story mixed-use building at their recently purchased site located at 803 South Avenue, Plainfield, NJ.
The lender, Trevian Capital provided a 3-year interest-only construction loan on a non-recourse basis at favorable terms.
“The dramatic uptick in redevelopment within Plainfield’s Transit Oriented Development community has brought tremendous opportunities to the area, while gaining significant corridor advantages associated with transit systems.” – says Brad Domenico
Construction on the fully approved multifamily site includes the development of a 57-foot structure consisting of (104) residential and (1) commercial units. The residential unit mix will be comprised of 10 studio apartments, 61 one-bedroom and 33 two-bedroom units. Amenities within the project include 8,900 SQFT of outdoor recreational space with three separate seating areas, a grilling station, a club room and a fitness center, all of which residents pay amenity fees to use. The property also offers ground floor covered parking, providing (112) parking spaces for tenants and their guests, which will be rented out to tenants to generate additional income.
803 South Avenue will be delivered with a Payment in Lieu of Taxes (“PILOT”) from the city of Plainfield. The 30-year PILOT is being negotiated at 10% of EGR, significantly reducing the operating expenses of the property and bolstering returns. The PILOT will allow for steady and predictable revenue streams by limiting their exposure to changes in local tax regulations.
Since the property is situated in close proximity to the transit hub, the development project falls within Plainfield’s Transit Oriented Development Netherwood – South Avenue Redevelopment Plan, which was created in 2017 to revitalize an underutilized area. Ideally located alongside the NJ Transit’s Raritan Valley Line and within walking distance from Netherwood Train Station, which provides direct access to Manhattan. The property is also just one mile south of Route 22, which serves as Union County and Somerset County’s main business and retail corridors and is minutes from routes 27 and 28 and interstates 78 and 287.
Progress Capital is a commercial mortgage advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. With over 30 years of experience, we continually prove our value to our clients by securing the best capital options available in the market.