Capodagli Property Company secured a $67.5 million floating-rate construction loan from SCALE Lending for Phase II of Meridia Rahway Brownstones in Rahway, New Jersey. The 30-month loan, which includes two six-month extension options, is intended to retire existing senior debt and fund completion of the project. Completion is expected in November 2028.
What are the loan terms?
Commercial Observer and the New York Real Estate Journal reported the financing on October 1, 2026. Capodagli Property Company is the borrower, and SCALE Lending is the lender. The loan was sourced through a direct relationship between the lender and borrower; the reports do not identify a broker.
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| Term | Reported detail |
|---|---|
| Principal | $67.5 million |
| Rate type | Floating-rate |
| Stated term | 30 months |
| Extension options | Two six-month options |
| Reported uses | Retire existing senior debt and fund Phase II construction completion |
| Expected completion | November 2028 |
The public reports do not state the interest rate or spread, loan-to-cost ratio, total development cost, extension conditions, maturity date after extensions, or full collateral package. Those terms cannot be determined from the disclosed information. (Commercial Observer; New York Real Estate Journal)
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Phase II is planned as a five-story, 168,500-square-foot multifamily building with 200 one- and two-bedroom apartments. Six units are designated affordable under a 30-year payment-in-lieu-of-taxes (PILOT) agreement with the City of Rahway. The plan also includes 2,000 square feet of ground-floor retail and 493 parking spaces. Meridia Construction Management, a Capodagli affiliate, is the general contractor.
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The project is at 1999 Elizabeth Avenue. Capodagli acquired the site in 2012 and rezoned it from industrial to residential use, according to the transaction reports. (New York Real Estate Journal; Commercial Observer)
How does Phase II fit with the completed first phase?
Phase I delivered 298 apartments in 2022 and is described by the New York Real Estate Journal as fully stabilized. Adding the planned 200 Phase II apartments brings the two reported phases to 498 units in total. The 2018 construction loan reported for the first phase was a separate financing and should not be confused with this Phase II loan. (Commercial Observer; New York Real Estate Journal; Real Estate NJ)
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the announcement does—and does not—establish
The financing announcement identifies the loan amount, lender, borrower, broad use of proceeds, stated term, and project scope. It does not provide enough information to calculate the loan’s pricing or leverage, assess extension availability, or compare its underwriting with other construction loans. Statements by transaction participants about the project or lending relationship are their views, not independent evidence of market demand or performance.
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