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.
Construction Loan Secured for Blue Hill Luxury Apartments in Watchung, NJ
JLL Capital Markets has successfully arranged a construction loan and joint venture equity for the development of Blue Hill at Watchung, a new luxury apartment community projected to cost approximately $102.87 million. The announcement was made on August 8, and construction is scheduled to begin in July, with an expected completion date in 2026.
The project will be located on Bonnie Burn Road and will feature 230 units within six four-story buildings and a two-story clubhouse. Specifically, the unit mix will include 184 market-rate units and 46 affordable-rate units, catering to a diverse range of residents. The average size for the market-rate units is anticipated to be 1,141 square feet.
Amenities and Community Features
The Blue Hill development aims to provide residents with a comprehensive lifestyle experience. Planned amenities include a resort-style pool, fitness center, private dining room, billiards room, golf simulator, co-working spaces, and private garages. These features are designed to enhance the living experience and create a strong sense of community among residents.
Strategic Location and Accessibility
The property’s strategic location offers easy access to Route 22 and Interstate 78, which connect residents to major employment hubs in central and northern New Jersey and New York City. Furthermore, the site is situated less than a mile from The Peak, a significant 1.5 million-square-foot Class A office park that houses major firms including Fiserv, L’Oréal, and Celgene.
Financial Implications for the Borough
The financial structure of the project includes a 30-year Payment in Lieu of Taxes (PILOT) agreement with the Borough of Watchung. This arrangement is projected to generate approximately $31.8 million in revenue for the borough over the duration of the agreement. This fiscal strategy aims to relieve the tax burden on current property owners while enhancing community resources.
Planning Approvals and Community Impact
The Planning Board granted final approval for the project on October 27, which was part of a court-mandated affordable housing settlement that calls for a total of 372 affordable housing units in the region, with 46 units specifically designated for low- and moderate-income tenants. This initiative aligns with ongoing efforts to address housing shortages and improve living conditions for residents.
Concerns and Legal Challenges
Despite the positive momentum, the project is not without challenges. A lawsuit has been filed by Weldon Materials, raising concerns about potential negative impacts, particularly regarding traffic congestion on Bonnie Burn Road. The Borough of Watchung faces a deadline to respond to the lawsuit by February 4.
Currently, the site generates about $8,000 in total annual property taxes, with only $2,500 allocated to the municipality. The anticipated development aims not only to enhance the housing situation but also to inject significant financial benefits into the local economy through increased property values and ongoing development activities.
As the Blue Hill at Watchung project moves forward, it has the potential to dramatically shape the community landscape and address the pressing needs for both affordable and luxury housing options in Watchung.
Deeper Dive: News & Info About This Topic
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
Author: Construction FL News
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