Construction Loan Secured for Blue Hill Luxury Apartments in Watchung, NJ

News Summary

JLL Capital Markets has secured a construction loan for Blue Hill at Watchung, a luxury apartment project in New Jersey costing approximately $102.87 million. The development will feature 230 units, including market-rate and affordable options, and is set to enhance community living. Construction begins soon, with completion anticipated in 2026. The project also includes a financial agreement expected to significantly benefit the local economy. However, concerns about traffic impacts have emerged as a lawsuit aims to challenge the development.

Watchung, NJ Set for Luxury Apartment Development with $102.87 Million Loan

A significant new construction project is on the horizon for Watchung, New Jersey, as JLL Capital Markets has secured a substantial construction loan and joint venture equity for the development of Blue Hill at Watchung. The project, which has a total cost estimated at $102.87 million, will feature a luxury apartment community comprising 230 units.

Project Overview and Timeline

The development will take place on Bonnie Burn Road, covering a total of 41.8 acres, with 23 acres allocated for preserved land. Plans include the construction of six four-story buildings alongside a two-story clubhouse. Construction is set to commence in July 2023, with the project expected to take approximately 36 months to complete. The apartments are slated for completion in 2026, with an anticipated stabilization date of March 2028.

Housing Composition and Pricing

The Blue Hill at Watchung community will offer a mix of housing options, including 184 market-rate units and 46 affordable-rate units. The average size of the market-rate apartments is projected to be 1,141 square feet, catering to a variety of residents. This development aims to assist in a court-mandated affordable housing settlement that targets the addition of 372 affordable housing units across the borough, ensuring that the needs of low- and moderate-income tenants are addressed.

Amenities and Community Features

The luxury apartments will come equipped with a range of anticipated amenities designed to enhance the living experience. This includes:

• Resort-style pool
• Fitness center
• Private dining room
• Billiards room
• Golf simulator
• Co-working space
• Private garages

These features make the community not only a place to live but a hub for entertainment and recreation.

Accessibility and Location Benefits

The project boasts a prime location with convenient access to Route 22 and Interstate 78, which connects residents to key employment centers in central and northern New Jersey, as well as New York City. Additionally, the site is located less than a mile from The Peak, a significant office park with over 1.5 million square feet of Class A office space that houses major companies, including Fiserv, L’Oréal, and Celgene, making it an appealing option for commuting professionals.

Financial Implications and Tax Relief

The Blue Hill at Watchung project is set to benefit from a 30-year Payment in Lieu of Taxes (PILOT) agreement with the Borough of Watchung. This arrangement is projected to generate approximately $31.8 million in revenue for the borough over the next three decades while alleviating the tax burden on current property owners, presenting a financial advantage for both the municipality and local residents.

Legal Challenges and Community Response

Overall, the Blue Hill at Watchung is set to reshape the luxury apartment landscape in Watchung, bringing much-needed housing options and community amenities, while also addressing broader affordable housing needs in the region.

Deeper Dive: News & Info About This Topic

Additional Resources

• ROI-NJ: JLL Arranges Construction Financing for Apartment Community in Watchung
• MyCentralJersey: Watchung Reaches $32M Agreement for 230 Apartments
• MyCentralJersey: Blue Hill Luxury Apartments Announcement
• Wikipedia: Affordable Housing
• Google Search: Watchung NJ Housing Development