SCALE Lending issues $67.5 million construction loan for Meridia Rahway Brownstones Phase II

Rahway, NJ SCALE Lending has finalized a $67.5 million construction loan for Capodagli Property Company (Capodagli) for the development of Meridia Rahway Brownstones Phase II, a five-story multifamily building.

Capodagli, led by George Capodagli, will utilize the funds to retire an existing senior loan and complete construction of the ground-up development located at 1999 Elizabeth Ave. The floating rate loan runs for 30 months with two six-month extension options and was sourced through a direct relationship with the borrower. Capodagli affiliate Meridia Construction Management will serve as the general contractor, and work is expected to be completed in November 2028.

Following acquisition of the site in 2012, Capodagli rezoned the land from industrial to multifamily use. Phase I of the two-phase project – comprising 298 apartments – was delivered in 2022 and is fully stabilized. Phase II will be comprised of 200 one- and two-bedroom apartments across 168,500 s/f, including six units designated as affordable according to a 30-year PILOT agreement with the city of Rahway. The property will also feature 2,000 s/f of ground-floor retail space and 493 parking spaces.

“The success of Phase I of Meridia Rahway Brownstones proved out what the market is seeking, and we’re excited to build on that by financing Phase II,” said Martin Nussbaum, co-founder and principal, Slate Property Group. “Capodagli’s deep local roots and strong track record across New Jersey made for exactly the kind of project SCALE is built for — putting capital to work to deliver housing where it’s genuinely needed.”

“We’re pleased to close another construction loan with SCALE, who continues to be an exceptional lending partner,” said John Longo, chief investment officer, Capodagli Property Company. “We look forward to bringing The Brownstones at Rahway Phase II to life and delivering an additional outstanding community for the city of Rahway.”

Capodagli is a Linden, N.J. based development firm with a strong track record of developing multifamily assets in suburban New Jersey submarkets. Since 2014, the company has developed more than 2,000 residential units across 13 projects in New Jersey including Phase I of Meridia Rahway Brownstones.

Meridia Rahway Brownstones is conveniently located on Elizabeth Avenue, a prime corridor that runs through Rahway and Linden and offers direct access to downtown Rahway’s dining, entertainment and transportation options. Building amenities will include a fitness center, yoga room, indoor/outdoor pool, outdoor pool deck, multipurpose lounge, coworking space, dog wash, bike storage and a basketball court.

This financing follows SCALE’s $460 million cross-collateralized facility for Namdar Group’s two 43-story multifamily buildings located in downtown Miami, FL in the fall of 2025, a $108 million construction loan for CSC Real Estate’s 17-story 770 Second Ave. in Murray Hill this past spring and a $245 million bridge loan for Terra Group’s 578-unit Upland Park Phase 1A in Miami, Fla. this fall. This loan continues the SCALE venture’s recent momentum, having originated $880 million in closings over the past 12 months.