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.

JLL Secures $102.87 Million Construction Loan for Blue Hill Luxury Apartments in Watchung, NJ

JLL Capital Markets recently announced the successful acquisition of a significant construction loan for the development of Blue Hill at Watchung, a high-end apartment complex poised to reshape the living landscape in Watchung, New Jersey. The loan, totaling $102.87 million, includes both construction financing and joint venture equity, facilitating a comprehensive plan for this luxurious community.

The project will consist of 230 high-quality apartment units, aiming to cater to a diverse range of potential residents. With an expected completion date set for 2026, Blue Hill at Watchung is slated to feature six four-story buildings alongside a two-story clubhouse, all spread over a carefully planned site of 41.8 acres.

Of the 230 apartments, 184 will be market-rate units and 46 will be affordable, ensuring the development meets the needs of various income levels. The market-rate units are projected to average around 1,141 square feet, providing spacious options for residents. In addition to housing, the Blue Hill community will boast a range of amenities designed to foster an inviting living environment, including:

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

Strategically located on Bonnie Burn Road, this new apartment complex not only offers something for everyone but also provides ease of access to major transportation routes including Route 22 and Interstate 78. This ensures that residents can reach key employment centers in both central and northern New Jersey, as well as New York City with relative ease.

The project comes with the backing of a significant 30-year Payment in Lieu of Taxes (PILOT) agreement with the Borough of Watchung, projected to contribute approximately $31.8 million in new revenue for the municipality over three decades. This agreement is viewed positively by local officials, as it reduces the tax burden on existing property owners while enabling the borough to secure much-needed funds for various community needs.

Approval for the project was granted by the Planning Board in late October, allowing construction to begin as soon as July. The construction timeline is estimated to take around 36 months to complete. It also responds to a court-mandated affordable housing settlement, which aims to create 372 affordable housing units within the area, designating 46 units specifically for low- and moderate-income families.

Currently, the site generates about $8,000 in annual property taxes, with only $2,500 going directly to the municipality. This stark contrast in revenue highlights the potential financial benefits the Blue Hill project could bring to the local economy.

However, the development is not without its challenges. A lawsuit has been filed by Weldon Materials, raising concerns about possible negative impacts, specifically regarding traffic congestion on Bonnie Burn Road due to the anticipated increase in local population. The deadline for Watchung to respond to this legal challenge is set for February 4.

As the project progresses towards its groundbreaking, all eyes will be on Blue Hill at Watchung, both for its promise of luxury living and its potential economic uplift for the community.

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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