Capodagli Secures $68M for 200-Unit Meridia Brownstones Phase II

• 1999 Elizabeth Avenue, Rahway, NJ: Capodagli Property Company has secured $67.5 million in construction financing for the second phase of Meridia Rahway Brownstones, a five-story, 200-unit rental development.
• The project will add 168,500 square feet: Phase II will include 200 one- and two-bedroom apartments, 2,000 square feet of ground-floor retail and 493 parking spaces.
• Completion is targeted for November 2028: SCALE Lending, the debt financing arm of Slate Property Group, provided the 30-month floating-rate loan with two six-month extension options.

What Capodagli Is Building

Capodagli Property Company is moving forward with the second phase of Meridia Rahway Brownstones at 1999 Elizabeth Avenue after closing on construction financing. The developer acquired the site in 2012 and subsequently rezoned the former industrial property for multifamily development. The first phase delivered 298 apartments in 2022 and is fully stabilized. Phase II will bring the overall Brownstones development to nearly 500 apartments.

 

 

What The 200-Unit Project Includes

The five-story Phase II building will span approximately 168,500 square feet and feature one- and two-bedroom apartments. Six units will be designated as affordable under a 30-year PILOT agreement with the City of Rahway. The project will also include a two-level, 493-space parking garage and 2,000 square feet of retail along Elizabeth Avenue.

What Amenities Residents Will Get

The development is planned around a central courtyard and will offer a broad amenity package. Residents will have access to a fitness center, yoga room, indoor-outdoor pool, outdoor pool deck, multipurpose lounge, coworking space, dog wash, bike storage and basketball court. Eight second-floor apartments will also have walk-up entrances along Elizabeth Avenue.

What The $67.5M Loan Covers

SCALE Lending provided the floating-rate construction loan, which carries a 30-month term plus two six-month extension options. The proceeds will retire an existing senior loan and fund completion of the ground-up development. Capodagli affiliate Meridia Construction Management is serving as general contractor, while the financing was sourced through a direct relationship between the lender and developer.

What Phase II Means For Rahway

The project continues the transformation of a former industrial corridor along Elizabeth Avenue into a larger residential district. Capodagli says it has developed more than 2,000 residential units across 13 New Jersey projects since 2014, giving the company a substantial existing footprint in the state's suburban multifamily market. With Phase I stabilized and Phase II now financed, Capodagli is extending its bet on Rahway's rental demand while adding retail and amenities to the corridor.