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 $162 Million Construction Loan for The Raye by Vermella in New Brunswick
Key financing closed; construction to continue on two-building luxury community
Russo Development LLC has closed on a $162 million construction financing package provided by Wells Fargo for The Raye by Vermella, an under-development luxury apartment community in New Brunswick, New Jersey. The loan is structured as a three-year, floating-rate permanent construction loan and was arranged by JLL Capital Markets.
The financing transaction was handled by a JLL team that included Senior Managing Director Thomas Didio, Managing Director Thomas E. Didio, Jr., Director Gerard Quinn and Associate Michael Mataras. Another owner listed on the project is Transformco Properties.
Project size, timing and leasing
The Raye by Vermella is being developed as two five-story buildings built over two construction phases on a roughly 20-acre site that was once home to a Sears store closed in 2020. Phase one is nearing completion and is expected to reach full stabilization by the end of this year. That first phase will bring 272 residences with a mix of one- to three-bedroom layouts and is currently about 65% pre-leased.
Phase two will add another 262 units, with expected stabilization in late 2027 (Q3 2027). Sources referencing the development list the overall unit count as either 543 units or 534 units across the multifamily portion; the discrepancy reflects differing stage counts in public reports and may relate to how certain unit types or accessory townhomes are cataloged. In addition to the apartments, the larger development includes a separate section called Scarlet Place with 168 Pulte townhomes, which are reported to be nearly finished.
Amenities, design and resident features
The community will offer a range of amenities aimed at luxury renters, including a pool deck with grilling stations, a fitness center, package lockers, a pet spa, a children’s playroom and dedicated podcast rooms. Individual units will be equipped with in-unit washers and dryers, stainless steel appliances, and walk-in closets. Some residences will include dens and private balconies or patios.
Plans also call for about 40,000 square feet of ground-floor retail and there have been discussions about placing a grocery store in the second building, which would add to the project’s neighborhood retail offerings.
Site location and transportation
The development is cited at both 1000 Vermella Drive and 51 US 1 in various filings and listings. The site provides access to major roadways, including the New Jersey Turnpike, U.S. Route 1 and Route 18. The community will offer a private shuttle to the New Brunswick train station for NJ Transit connections. Rutgers University is roughly two miles away, and Newark Liberty International Airport is approximately 22 miles from the site.
Financing context and prior loans
The current Wells Fargo loan supplements an earlier construction loan that Russo secured for the project in 2023 through the same lender, reported at $72 million. The new $162 million package is being positioned by the developer and finance arranger as confirmation of lender interest in well-located, high-quality multifamily development with experienced sponsorship.
Community, timing and broader pipeline
The Raye is part of the Vermella brand portfolio that Russo Development has been building across the state. Previous Vermella projects have opened in recent years, and the company also recently delivered another luxury rental project with ground-floor retail space. Russo has additional multifamily plans in the region, including a future 426-unit project near Paramus and participation in a two-phase redevelopment at the Bergen Town Center site, acquired with a partner for $25 million.
Public incentives and community outreach
The Raye benefits from a 30-year PILOT (payment-in-lieu-of-taxes) program described by the developer as accretive to the project’s financials. Russo also involved local schools in an educational planning exercise through an UrbanPlan program designed to give high school students hands-on exposure to development decision-making.
Construction continues on-site. Phase one units are leasing and becoming occupied while phase two moves through permitting and construction scheduling toward a late-2027 stabilization target.
Frequently Asked Questions
What is the size and scope of The Raye by Vermella?
The multifamily portion of the development is reported in public materials as either 534 or 543 units across two five-story buildings. The overall site also includes 168 townhomes in a separate Scarlet Place section, ground-floor retail totaling roughly 40,000 square feet, and a mix of on-site amenities.
Who is financing the project?
A $162 million three-year, floating-rate permanent construction loan was provided by Wells Fargo. The financing was arranged by JLL Capital Markets. Earlier in the project timeline, there was an additional reported construction loan of $72 million from the same lender.
What is the construction and leasing timeline?
Phase one is nearing completion and expected to reach full stabilization by the end of this year, with 272 units included in that phase and approximately 65% already pre-leased. Phase two, adding 262 units, is projected to stabilize in late 2027.
What resident amenities and unit features are planned?
Amenities include a pool deck with grilling stations, fitness center, package lockers, pet spa, children’s playroom, and podcast rooms. Units will include in-unit washers and dryers, stainless steel appliances, and walk-in closets; some units will offer dens and private balconies or patios.
Where is the site located and what transport links are available?
The project sits on about 20 acres at addresses listed as 1000 Vermella Drive and 51 US 1. It has direct access to U.S. Route 1, Route 18, and the New Jersey Turnpike, and will provide a private shuttle to the New Brunswick rail station. Rutgers University is roughly two miles away, and Newark Liberty International Airport is about 22 miles distant.
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Key project features
| Feature | Detail |
|---|---|
| Project name | The Raye by Vermella |
| Developer / Owner | Russo Development LLC; Transformco Properties also listed |
| Construction loan | $162 million three-year floating-rate permanent construction loan from Wells Fargo |
| Loan arranger | JLL Capital Markets (transaction team members listed) |
| Site acreage | About 20 acres |
| Multifamily units | Phase 1: 272 units; Phase 2: 262 units; overall counts reported as 534–543 |
| Townhomes | 168 Pulte townhomes (Scarlet Place) |
| Retail | ~40,000 sq ft ground-floor retail; grocery store talks reported |
| Amenities | Pool deck, fitness center, package lockers, pet spa, children’s playroom, podcast rooms |
| Unit features | In-unit W/D, stainless steel appliances, walk-in closets; select units with dens and balconies/patios |
| Incentives | 30-year PILOT program |
| Access | New Jersey Turnpike, US 1, Route 18; private shuttle to New Brunswick train station |
| Location notes | 1000 Vermella Drive / 51 US 1, New Brunswick, N.J. |
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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