New Brunswick, New Jersey, September 20, 2025
News Summary
Russo Development closed a $162 million, three-year floating-rate construction loan with Wells Fargo, arranged by JLL Capital Markets, to advance The Raye by Vermella in New Brunswick. The multibuilding luxury community is being delivered across two phases on a roughly 20-acre former Sears site and will include two five-story residential buildings, ground-floor retail of about 40,000 sq ft, and 168 adjacent Pulte townhomes in Scarlet Place. Phase one will deliver 272 units and is largely pre-leased; phase two will add roughly 262 units. The financing supports construction completion, lease-up and retail build-out under a 30-year PILOT program.
Russo Development Secures $162M Wells Fargo Construction Loan for The Raye by Vermella in New Brunswick
Key financial backing has been secured for a large luxury apartment complex underway in New Brunswick, N.J. Russo Development LLC closed on a $162 million construction loan provided by Wells Fargo. The financing is a three-year, floating-rate permanent construction loan, arranged by JLL Capital Markets on behalf of the borrower.
What the loan covers and who handled it
The new loan will support continued construction of The Raye by Vermella, a multi-building luxury community being built in two phases. The financing transaction was managed by a JLL team that included senior deal professionals. Records also show Russo Development previously received a $72 million construction loan from the same lender in 2023 for the project, indicating layered financing activity as the development advances.
Project scale and scope
The development consists of two five-story buildings set across a 20-acre site that was the former home of a department store that closed in 2020. Plans call for roughly 40,000 square feet of ground-floor retail space and discussions are underway about adding a grocery store in the second building. The community is paired with a for-sale section called Scarlet Place, where 168 townhomes built by Pulte are nearly finished.
Unit counts, phases and timelines
The project is frequently described with slightly different unit totals in public records; one count lists a 543-unit community while another reference lists 534 units across the two rental buildings. What is consistent is the two-phase breakdown: Phase one will deliver 272 residences (a mix of one- to three-bedroom layouts) and is nearing completion. Phase one is reported to be 65% pre-leased and is expected to reach full stabilization by the end of this year. Phase two will add about 262 units and is projected to stabilize in late 2027 (third quarter 2027 in some planning materials).
Apartment features and community amenities
Individual residences will include in-unit washers and dryers, stainless steel appliances, and walk-in closets. Some units will offer dens and private balconies or patios. Shared amenities planned for the community include a pool deck with grilling stations, a fitness center, package lockers, a pet spa, a children’s playroom, and podcast rooms. The community also plans to provide a private shuttle linking residents to the New Brunswick train station for NJ Transit access.
Location and access
The site is variously listed at 1000 Vermella Drive and 51 US 1 in New Brunswick. The property sits within easy reach of major corridors including the New Jersey Turnpike, Route 1 and Route 18. Rutgers University is approximately two miles away and Newark Liberty International Airport is about 22 miles from the site.
Local tax structure and community engagement
The development benefits from a 30-year PILOT (payment-in-lieu-of-taxes) program designed to make the project more financially manageable over the long term. The developer has also engaged local high school students through an educational planning program that simulates real estate development and planning exercises.
Other developer activity
Russo Development has multiple New Jersey projects under its belt, including a Vermella-branded community that opened in 2022 and another luxury property delivered late last year. The developer also has a planned 426-unit multifamily project near Paramus and participated in a land purchase with a partner for a separate town center redevelopment site that is slated for two-phase construction.
Transaction team
JLL Capital Markets secured the $162 million financing on behalf of Russo Development, with the JLL deal team including senior and managing directors and supporting staff assigned to the transaction. The lender on the financing was Wells Fargo and Transformco Properties is listed as an owner partner on project records.
FAQ
What is the amount and type of the new loan?
The development closed on a $162 million three-year, floating-rate permanent construction loan from Wells Fargo.
How many rental units will The Raye include?
Project descriptions vary; counts show either 534 or 543 rental units across the two buildings. Phase one will deliver 272 units and phase two about 262.
When will phases stabilize?
Phase one is expected to reach full stabilization by the end of this year. Phase two is projected to stabilize in late 2027 (around Q3 2027).
What amenities and in-unit features are included?
Units will have in-unit washers and dryers, stainless steel appliances and walk-in closets; community amenities include a pool deck with grilling stations, fitness center, package lockers, pet spa, children’s playroom and podcast rooms.
Is there retail planned?
Yes, plans include approximately 40,000 square feet of ground-floor retail and talks are underway about adding a grocery store in the second building.
How large is the site and what was there before?
The site covers about 20 acres and was previously occupied by a department store that closed in 2020.
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Key project features at a glance
| Feature | Detail |
|---|---|
| Loan amount | $162 million |
| Lender | Wells Fargo |
| Loan term/type | 3-year, floating-rate permanent construction loan |
| Arranger | JLL Capital Markets |
| Site | 20 acres; former department store site (closed 2020) |
| Total rental units | 534–543 (varied reports) |
| Phase 1 units | 272 (65% pre-leased) |
| Phase 2 units | 262 (stabilization expected late 2027) |
| For-sale units (Scarlet Place) | 168 Pulte townhomes (nearly finished) |
| Amenities | Pool deck with grilling stations, fitness center, package lockers, pet spa, children’s playroom, podcast rooms, private shuttle |
| Retail | ~40,000 sq ft ground-floor retail; grocery store under consideration |
| Location notes | Addresses listed as 1000 Vermella Drive and 51 US 1; near NJ Turnpike, Route 1, Route 18, ~2 miles to Rutgers |
| Tax arrangement | 30-year PILOT program |
Deeper Dive: News & Info About This Topic
Additional Resources
- Multihousing News: Russo Development wins $162M Wells Fargo loan for The Raye
- Wikipedia: The Raye (New Brunswick)
- ConnectCRE: Wells Fargo lends $162M on New Brunswick multifamily
- Google Search: Russo Development The Raye Vermella New Brunswick
- MyCentralJersey: What’s happening with the old Sears site on Route 1 in New Brunswick
- Google Scholar: The Raye New Brunswick multifamily
- NJ.com: Luxury apartments replace former Sears near Rutgers
- Encyclopedia Britannica: New Brunswick, New Jersey
- MyCentralJersey Video: See inside The Raye by Vermella on Route 1
- Google News: The Raye by Vermella New Brunswick
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