$90.9M capitalization secured for New Jersey multi-housing development

MORRISTOWN, NJ – JLL Capital Markets announced today that it arranged $68.2 million in senior debt and $22.7 million in mezzanine construction financing for PARQ, a 275-unit, Class A to-be-built apartment community located in Parsippany, Morris County, New Jersey.

JLL represented the borrower, PARQ Builders, to secure a senior floating-rate construction loan through an institutional lender, as well as mezzanine debt with Nationwide Life Insurance Company.

PARQ is the first phase of a larger project transforming Lanidex Plaza Office Park into a premier mixed-use development, featuring luxury apartments, retail space, upscale townhouses, Class A office space, and athletic fields. The next phases of the project will see nearly 500,000 square feet of 1980s vintage Class B office space demolished for the development of luxury apartments and Class A office space. 

“We’re excited to change the narrative on multifamily development in Northern New Jersey from the typical infill spot development, to a true “Placemaking” community. PARQ will forge us into the 21st century with state-of-the-art facilities, vast and welcoming green spaces for the community to enjoy, a recreational complex open to residents and sports programs and enhanced revenue as a result of the site’s modernization,” said Haytham Haidar Managing Director of Parq Builders.

PARQ was designed from the ground up to achieve “Best-in-Class” status among suburban luxury communities in Northern New Jersey, from its architectural exterior to sumptuous unit and common area interior finishes. PARQ will set the standard for luxury communities with its wide array of high-quality community amenities, including a boutique hotel-style lobby, state-of-the-art fitness center, club suite, library lounge, private event room, co-working alcoves, resort-style pool area and a wrap parking deck accessible from each level of the building.  

PARQ is centrally located in Northern New Jersey at the junction of Interstates 80 and 287, 25 miles west of New York City. Minutes from mass transportation and the Route 46 and Route 10 retail corridors, PARQ will  provide its residents with ultimate convenience to employment, shopping and other area amenities. PARQ will offer easy access to one of the largest concentrations of corporate office space in New Jersey.

The JLL Capital Markets Debt Advisory team representing the borrower was led by Senior Managing Directors Michael Klein and Jon Mikula, and Vice President Michael Lachs.

“JLL is proud to have assisted PARQ Builders in putting together the capital stack for this placemaking community,” said Klein. “The borrower had the foresight and vision of what this office park could become. It took over six years to get to this point, and we cannot wait to watch the project get developed.”

“The lenders were great to work with. They easily understood the demand in the market for a project of this quality and patiently worked with the sponsor to adjust to evolving market conditions,” added Mikula.