West of Hudson Properties is planning a five-story, mixed-use building in Plainfield that will bring 104 new apartments and a commercial unit to a site at 803 South Ave., as depicted in this rendering. — Courtesy: Progress Capital
By Joshua Burd
A development team has landed a nearly $18 million construction loan for a planned 104-unit apartment building in Plainfield, in a deal arranged by Progress Capital.
The debt placement team said the borrowers, Eyal Gagin and Abraham Gagin of West of Hudson Properties, recently purchased the site at 803 South Ave. and now plan to build a five-story building that will also include one commercial unit. Trevian Capital provided the three-year, interest-only financing on a non-recourse basis.
“The dramatic uptick in redevelopment within Plainfield’s (transit-oriented development) community has brought tremendous opportunities to the area, while gaining significant corridor advantages associated with transit systems,” Progress Capital’s Brad Domenico said.
Domenico and Eddie Miro sourced the $17.68 million loan, noting that the borrower’s plans call for a mix of studio, one-bedroom and two-bedroom apartments. The fully approved project will also include 8,900 square feet of outdoor recreational space with three separate seating areas, a grilling station, a club room and a fitness center, along with 112 ground-floor covered parking spaces.
The property, which will have a 30-year payment in lieu of taxes agreement with the city, falls within Plainfield’s Netherwood – South Avenue Redevelopment Plan, which was created in 2017 to revitalize an underutilized area around the Netherwood train station, Progress Capital said. The site is also just a mile south of Route 22, which serves as a main thoroughfare for Union and Somerset counties.