A 50-year-old downtown high-rise apartment complex that recently had its tax break extended has secured $11 million in financing.
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JLL Capital Markets arranged $11 million in permanent financing for the 288-unit Rahway Plaza Apartments on Main Street. JLL represented the borrower, Red Bank-based Denholtz Properties, to secure the five-year, fixed-rate loan through Malvern Bank, National Association. The two-building high-rise, built in 1970, includes one-, two-, and three-bedroom units that are low- and moderate-income, ranging from about $1,000 to $1,400 for monthly rents.
“Malvern Bank, National Association was attracted to Denholtz’s history with the property having developed in 1970 and owning and managing it ever since,” Michael Klein, senior managing director at JLL Capital Markets, said in a press release announcing the financing. The affordable units at the property “added some complexity to the transaction,” he added.
Not included in the press release or any of the sites that published the release is that the building’s owner has enjoyed a 50-year Payment In Lieu Of Taxes (PILOT) since it was built in 1970. And, City Council last month extended the tax break for another five years, through 2024.
The 2022 municipal budget anticipates about $520,000 in PILOT revenue from the owner of Rahway Plaza Apartments, which is similar to the 2021 payment of $523,000. The development pays an annual service charge of 14.4695 percent of annual gross rents.
Lower Main Street Associates is the entity listed on property records as the owner. The 12-story buildings on 7.2 acres at Main Street and East Hazelwood Avenue are assessed for $17,150,100, according to property records.
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