JLL Capital Markets said on Aug. 8 that it has secured a construction loan and joint venture equity for Blue Hill at Watchung, a 230-unit, Class A luxury apartment community to be developed in Watchung.
JLL represented the sponsor team, Livingston-based Sterling Properties Group and Danbro Properties of Caldwell, in arranging the loan through First Citizens Bank, headquartered in Raleigh, N.C. JLL also organized the sponsor’s joint-venture equity partnership with Marcus Partners of Boston.
Total project cost is $102.87 million and is scheduled for completion in 2026. The property on Bonnie Burn Road in Watchung is projected to achieve stabilization by March 2028.
Blue Hill at Watchung will feature six four-story buildings and a two-story clubhouse on a 41.8-acre site with 23 acres of preserved land. The community will include 184 market-rate units and 46 affordable-rate units, with an average market-rate unit size of 1,141 square feet. The property will offer amenities such as a resort-style pool, fitness center, private dining room, billiards room, golf simulator, co-working space, and private garages.
The property is near Route 22 and Interstate 78 with access to major employment centers in central and northern New Jersey, as well as New York City. The site is less than a mile from The Peak, a 1.5 million-square-foot Class A office park home to major corporate facilities for Fiserv, L’Oréal, Celgene, and others.
The property also benefits from a 30-year PILOT agreement with the Borough of Watchung.
JLL Capital Market’s team was led by Senior Managing Directors Jim Cadranell and Jon Mikula, along with Vice President Michael Lachs.
“Blue Hill at Watchung represents an exceptional opportunity to develop a market-leading luxury apartment community in one of New Jersey’s most prestigious locations,” said Cadranell. “The strong sponsorship team, premier location with significant barriers to entry and comprehensive amenity package positioned this project for success in the capital markets.”
