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 wins $162 million Wells Fargo construction loan for The Raye by Vermella in New Brunswick
Russo Development LLC has closed on a $162 million construction financing package provided by Wells Fargo to advance The Raye by Vermella, a large luxury apartment complex under construction 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.
Key transaction team and ownership
The financing was handled by a JLL team that included senior and managing directors and deal directors. The transaction team included senior managing director Thomas Didio, managing director Thomas E. Didio, Jr., director Gerard Quinn, and associate Michael Mataras. The ownership group on the project also lists Transformco Properties alongside Russo Development.
Project scope and schedule
The Raye by Vermella is being developed as a multibuilding, luxury residential community on a roughly 20-acre site that was the former home of a Sears store, which closed in 2020. Plans call for two five-story residential buildings delivered across two construction phases.
Phase one is approaching completion and is projected to reach full stabilization by the end of this year. That phase will deliver 272 residences with a mixture of one- to three-bedroom layouts, and it is already 65 percent pre-leased. Phase two will add 262 units and is expected to stabilize in late 2027 (reported as Q3 2027 in some materials).
Project reporting lists the total apartment count differently in separate sources. One figure describes a 543-unit community, while another source lists the development as a 534-unit multifamily project. In addition to the apartments, the development includes a residential subdivision called Scarlet Place featuring 168 Pulte townhomes, which are reported to be nearly finished.
Financing background
The newly closed $162 million loan follows an earlier Wells Fargo financing tied to the project. Publicly available data indicates Russo received a separate $72 million construction loan from Wells Fargo in 2023 for the same development. The current package is presented as a multiyear construction and permanent financing arrangement intended to support the remaining work and lease-up.
Design, amenities and retail
The Raye is planned with a range of resident amenities typical of higher-end suburban-urban multifamily complexes. Shared features include a pool deck with grilling stations, a fitness center, package lockers, a pet spa, a children’s playroom, and podcast rooms. Units will come with in-unit washers and dryers, stainless steel appliances, and walk-in closets. Some residences will include dens and private balconies or patios.
The ground-floor plan calls for approximately 40,000 square feet of retail. There are ongoing discussions about adding a grocery store anchored within the second building, which would increase neighborhood retail options.
Location and transit
The project is identified with two nearby addresses in different reports, including 1000 Vermella Drive and 51 US 1. The site provides easy access to major roadways, including the New Jersey Turnpike, Route 1 (US 1), and Route 18. The development will operate a private shuttle to the New Brunswick train station for NJ Transit access. Rutgers University sits roughly two miles away, and Newark Liberty International Airport is approximately 22 miles from the site.
Tax and community context
The project benefits from a 30-year PILOT (payment-in-lieu-of-taxes) program designed to support project economics over several decades. The site conversion repurposes land vacated by a national retailer into multifamily housing and neighborhood retail, and the developer has engaged local educational outreach by including the project in an urban planning education program for high school students.
Developer activity and related projects
Russo Development has been active across the region with multiple Vermella-branded properties already open or recently delivered. Notable recently finished projects include a 270-unit luxury property delivered with partners that includes ground-floor retail space, and another Vermella complex that opened in 2022. The firm also has a planned 426-unit multifamily project near Paramus and has participated in a land purchase for redevelopment of a Bergen County mall site, with that next project scheduled in two phases.
What this financing signals
Market participants point to the size and structure of the loan as an indication of continued lender support for well-located, high-quality multifamily developments backed by experienced sponsors. The financing is expected to fund construction completion, lease-up activities and the build-out of on-site retail over the next several years.
Project at a glance
- Loan amount: $162,000,000 (three-year, floating-rate permanent construction loan)
- Lender: Wells Fargo
- Arranger: JLL Capital Markets
- Site size: ~20 acres
- Buildings: Two five-story residential buildings; two phases
- Phase one: 272 units; 65% pre-leased; stabilization expected by year-end
- Phase two: 262 units; stabilization expected late 2027
- Additional housing: 168 Pulte townhomes in Scarlet Place
- Retail: ~40,000 sq ft ground-floor retail; grocery discussions ongoing
Frequently Asked Questions
What is the size and structure of the new loan for The Raye?
The project secured a $162 million construction financing package from Wells Fargo that is structured as a three-year, floating-rate permanent construction loan to support the remaining build and lease-up.
Who arranged and advised on the financing?
JLL Capital Markets arranged the loan and the transaction team included senior managing director Thomas Didio, managing director Thomas E. Didio, Jr., director Gerard Quinn, and associate Michael Mataras.
How many apartments will The Raye include?
Published materials show differing totals. The development is reported as a 543-unit community in some documents and a 534-unit multifamily project in others. The site is being delivered in two phases: 272 units in phase one and 262 units in phase two, plus 168 Pulte townhomes in a connected section called Scarlet Place.
What 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 have in-unit washers and dryers, stainless steel appliances, walk-in closets, with some layouts offering dens and private balconies or patios.
Where is the site and what transit options will residents have?
The project is located near US 1 with reported addresses including 1000 Vermella Drive and 51 US 1. It offers access to the New Jersey Turnpike, Route 1, and Route 18, and a private shuttle will link residents to the New Brunswick NJ Transit station. Rutgers University is about two miles away.
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Key project features
| Feature | Detail |
|---|---|
| Loan amount | $162,000,000 (three-year, floating-rate permanent construction loan) |
| Lender | Wells Fargo |
| Arranger | JLL Capital Markets |
| Site size | Approximately 20 acres (former Sears site) |
| Residential buildings | Two five-story buildings delivered in two phases |
| Units by phase | Phase one: 272 units (65% pre-leased); Phase two: 262 units |
| Additional housing | 168 Pulte townhomes (Scarlet Place) |
| Retail | ~40,000 sq ft ground-floor retail; grocery discussions ongoing |
| Amenities | Pool deck, fitness center, package lockers, pet spa, children’s playroom, podcast rooms |
| Unit features | In-unit washer/dryer, stainless steel appliances, walk-in closets, some dens, private balconies/patios |
| Tax incentive | 30-year PILOT program |
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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