News Summary
JLL Capital Markets has secured a construction loan for Blue Hill at Watchung, a luxury apartment project in New Jersey costing approximately $102.87 million. The development will feature 230 units, including market-rate and affordable options, and is set to enhance community living. Construction begins soon, with completion anticipated in 2026. The project also includes a financial agreement expected to significantly benefit the local economy. However, concerns about traffic impacts have emerged as a lawsuit aims to challenge the development.
Construction Loan Secured for Blue Hill Luxury Apartments in Watchung, NJ
JLL Capital Markets announced that it has successfully secured a construction loan amounting to $102.87 million for the development of Blue Hill at Watchung, a new luxury apartment community in Watchung, New Jersey. This construction project aims to enhance the local housing market by offering a total of 230 units, comprising both market-rate and affordable housing options. Scheduled for completion in 2026, the project holds significant potential for the region’s real estate landscape.
Project Overview
Located on Bonnie Burn Road, Blue Hill at Watchung is designed to feature six four-story buildings along with a two-story clubhouse. Covering a site area of 41.8 acres, the development will reserve 23 acres as preserved land to maintain the natural landscape. The mix of units includes 184 market-rate apartments and 46 affordable-rate apartments, ensuring a variety of housing options that cater to a wider demographic.
Amenities and Community Features
The luxury apartments are anticipated to average 1,141 square feet in size, providing spacious living accommodations to future residents. To further enhance community living, a range of amenities is planned, including:
- Resort-style pool
- Fitness center
- Private dining room
- Billiards room
- Golf simulator
- Co-working space
- Private garages
Location Advantages
The project’s location offers easy access to major transportation routes such as Route 22 and Interstate 78, providing convenient connections to significant employment centers in both central and northern New Jersey, as well as to New York City. Importantly, it is situated within less than a mile from The Peak, a 1.5 million-square-foot Class A office park that accommodates major companies, creating additional opportunities for employment and local economic growth.
Financial Implications
In terms of fiscal responsibility, the project is supported by a 30-year Payment in Lieu of Taxes (PILOT) agreement with the Borough of Watchung. This agreement is expected to generate approximately $31.8 million in revenue for the borough over the span of three decades, relieving the tax burden on existing property owners while simultaneously benefiting the local financial landscape.
Planning and Development Timeline
Construction for Blue Hill at Watchung is set to commence in July and is estimated to take around 36 months to complete. The project has already received final approval from the Planning Board, with the aim to support a court-mandated affordable housing settlement targeting the development of a total of 372 affordable housing units in the broader area.
Legal Challenges
Conclusion
As Blue Hill at Watchung moves forward with its promising development, the collaboration between JLL, Sterling Properties Group, and Danbro Properties aims to create a vibrant community that prioritizes luxury living while addressing affordable housing needs. With its combination of amenities and strategic location, the project could become a landmark addition to Watchung’s housing options by the time it achieves stabilization in March 2028.