Plans for the first phase of PARQ Life Reimagined in Parsippany include a 275-unit luxury apartment building at 500 Parq Lane. — Courtesy: Parq Builders
(Editor’s note: This story was updated on June 8 with additional information from JLL, which sourced construction financing on behalf of Parq Builders.)
By Joshua Burd
A developer has secured $91 million in construction financing for 275 apartments in Parsippany, helping to kick off the transformation of a former suburban office park.
The borrower, Parq Builders, said two leading global insurance companies are providing the debt for the first phase of its PARQ Life Reimagined project off Parsippany Road. The firm started construction activities on May 17, working alongside Belle Contractors, with plans to deliver what’s known as 500 Parq Lane in early 2024.
JLL senior managing directors Michael Klein and Jon Mikula and Vice President Michael Lachs sourced the financing, which includes $68.2 million in senior debt and $22.7 million in mezzanine construction financing, with Murphy Schiller & Wilkes LLP acting as finance counsel and Garofalo O’Neill Ruggierio LLC acting as land use counsel for the project. The total development value for the first phase is $119 million.
“PARQ will forge us into the 21st century with state-of-the-art facilities, vast and welcoming green spaces for the community to enjoy, a recreational complex open to residents and sports programs to utilize, and enhanced revenue as a result of the site’s modernization,” said Haytham Haidar, PARQ’s managing director.
Haidar’s team is redeveloping the former Lanidex Plaza site near the junction of interstates 287 and 80, which spans 23 acres within what was a nine-building, 450,000-square-foot office park. Plans for the property now call for a walkable residential destination that is bolstered by on-site retail, open green space and modern amenities.
Minno & Wasko Architects and Planners leads the design team for a project that will use sustainable techniques and materials, as well as smart building and home features that promote wellness. The first phase will also have a lobby with a motor court drop-off, an upscale club suite, a private event room, a children’s playroom and a high-end fitness center, among other features.
“Urban renewal and revitalization projects are vital to stimulate the economy, enhance property values and instill a sense of civic pride,” said Anthony Milelli, principal director of PARQ.
The overall transformation of the 23 acres will conclude in 2025, according to a news release. The project team also includes Esposito Construction, Design 446, Greystar Real Estate Partners, Langan, Melillo + Bauer Associates and Mary Cook Associates.
“We are pleased to be working on this exceptional and transformational project,” said Charles J. Wilkes, a partner at Murphy Schiller & Wilkes. “It is a really great partnership among the lender, ownership and the professionals involved.”
In a separate announcement, JLL said an institutional lender provided the senior floating rate construction loan, while Nationwide Life Insurance Company provided the mezzanine debt.
“JLL is proud to have assisted PARQ Builders in putting together the capital stack for this placemaking community,” Klein said. “The borrower had the foresight and vision of what this office park could become. It took over six years to get to this point, and we cannot wait to watch the project get developed.”
Mikula added: “The lenders were great to work with. They easily understood the demand in the market for a project of this quality and patiently worked with the sponsor to adjust to evolving market conditions.”