New Brunswick, New Jersey, September 20, 2025
News Summary
Russo Development closed a $162 million, three-year floating-rate construction loan with Wells Fargo, arranged by JLL Capital Markets, to advance The Raye by Vermella in New Brunswick. The multibuilding luxury community is being delivered across two phases on a roughly 20-acre former Sears site and will include two five-story residential buildings, ground-floor retail of about 40,000 sq ft, and 168 adjacent Pulte townhomes in Scarlet Place. Phase one will deliver 272 units and is largely pre-leased; phase two will add roughly 262 units. The financing supports construction completion, lease-up and retail build-out under a 30-year PILOT program.
Russo Development secures $162 million construction loan from Wells Fargo for New Brunswick luxury complex
A major construction loan has closed for a luxury apartment community in New Brunswick, New Jersey. Russo Development LLC secured a $162 million three-year, floating-rate permanent construction loan provided by Wells Fargo. The financing was arranged by JLL Capital Markets, with the deal team including Senior Managing Director Thomas Didio, Managing Director Thomas E. Didio, Jr., Director Gerard Quinn and Associate Michael Mataras. Transformco Properties is also listed as an owner of the property.
What the loan will fund
The funding covers construction of The Raye by Vermella, a luxury multifamily community being developed across a roughly 20-acre site that was formerly home to a Sears store that closed in 2020. The project is being delivered as two five-story buildings developed in two phases, and includes ground-floor retail and community amenities. A separate construction loan of $72 million from Wells Fargo was previously obtained for the project in 2023, according to property data.
Phasing and unit counts
Phase one is nearing completion and is expected to reach full stabilization by the end of this year. That phase will deliver 272 residences comprised of one- to three-bedroom layouts and is already about 65 percent pre-leased. Phase two will add another 262 units and is anticipated to stabilize in late 2027. Overall unit totals cited for the two-building community vary in different project references, with figures listed as both 543 units and 534 units in separate materials; the two-phase breakdown above corresponds to the 534–543 range depending on final configuration and accounting.
Amenities, finishes and retail
The Raye by Vermella will feature a range of resident amenities including a pool deck with grilling stations, fitness center, package lockers, pet spa, children’s playroom and podcast rooms. Individual homes will include in-unit washers and dryers, stainless steel appliances, walk-in closets, and select units will offer dens and private balconies or patios. Plans call for about 40,000 square feet of ground-floor retail, and discussions have been reported regarding the possibility of adding a grocery store in the second building.
Location, transit and incentives
The development is identified in project material with addresses listed as both 1000 Vermella Drive and 51 US 1. The site provides direct access to major roadways including the New Jersey Turnpike, Route 1 and Route 18, and will offer residents a private shuttle to the New Brunswick Train Station for NJ Transit connections. Nearby points of interest include a campus of Rutgers University located about two miles away and Newark Liberty International Airport roughly 22 miles from the site. The community benefits from a 30-year payment-in-lieu-of-taxes (PILOT) program intended to support long-term financial viability.
Adjacent residential and development context
In addition to the two multifamily buildings, the overall development includes a residential section called Scarlet Place where 168 Pulte-built townhomes are being finished. Scarlet Place is reported to be nearly complete. The developer has also been active elsewhere in the region, delivering and operating properties under the Vermella brand and completing other large multifamily and mixed-use projects. Future pipeline projects and site acquisitions by the developer and partners indicate continued regional activity, including a planned multifamily project near Paramus and a purchased Bergen Town Center site acquired for $25 million that will move forward in two phases.
Financing and market view
JLL Capital Markets handled the debt placement on behalf of the borrower. The package reflects continued lender interest in well-located, high-quality multifamily projects backed by experienced sponsors. The three-year, floating-rate loan provides construction capital while allowing time for lease-up and stabilization across both phases.
Project timeline snapshot
- Phase one: 272 units; nearing completion; 65% pre-leased; expected to stabilize by year-end.
- Phase two: 262 units; expected stabilization in late 2027 (third quarter timeframe cited in project materials).
- Retail: 40,000 sq ft ground-floor commercial planned; grocery store under discussion for building two.
Frequently Asked Questions
What is the size of the construction loan for The Raye by Vermella?
The project closed on a $162 million three-year, floating-rate permanent construction loan provided by Wells Fargo.
How many apartments will The Raye include?
Project documents reference a two-building, two-phase community totaling roughly 534 to 543 units. Phase one includes 272 units and phase two will add 262 units.
What amenities and features will be offered?
Amenity offerings include a pool deck with grilling stations, fitness center, package lockers, pet spa, children’s playroom, podcast rooms, and in-unit washers/dryers, stainless appliances and walk-in closets in each residence. Some units will include dens and private balconies or patios.
Where is the project located and what transit links are nearby?
The site is referenced as both 1000 Vermella Drive and 51 US 1 in New Brunswick. It has access to the New Jersey Turnpike, Route 1 and Route 18, offers a private shuttle to the New Brunswick Train Station, and is approximately two miles from Rutgers University and about 22 miles from Newark Liberty International Airport.
Are there retail components or other housing types on the site?
Yes. The ground floor will include about 40,000 square feet of retail, and there are conversations about adding a grocery store in the second building. The broader development also includes 168 Pulte townhomes in the Scarlet Place section, which are nearly finished.
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Key Project Features
| Feature | Detail |
|---|---|
| Construction loan | $162 million — three-year, floating-rate permanent construction loan from Wells Fargo |
| Development | Two five-story buildings; two phases; 272 units in phase one, 262 units in phase two |
| Amenities | Pool deck, fitness center, package lockers, pet spa, children’s playroom, podcast rooms |
| Retail | ~40,000 sq ft ground-floor retail; grocery store under discussion |
| Site | ~20 acres; former Sears site; addresses listed as 1000 Vermella Drive and 51 US 1 |
| Incentives | 30-year PILOT program |
| Nearby access | New Jersey Turnpike, Route 1, Route 18, private shuttle to New Brunswick train station |
| Additional housing | 168 Pulte townhomes in Scarlet Place (nearly complete) |
Deeper Dive: News & Info About This Topic
Additional Resources
- Multihousing News: Russo Development wins $162M Wells Fargo loan for The Raye
- Wikipedia: The Raye (New Brunswick)
- ConnectCRE: Wells Fargo lends $162M on New Brunswick multifamily
- Google Search: Russo Development The Raye Vermella New Brunswick
- MyCentralJersey: What’s happening with the old Sears site on Route 1 in New Brunswick
- Google Scholar: The Raye New Brunswick multifamily
- NJ.com: Luxury apartments replace former Sears near Rutgers
- Encyclopedia Britannica: New Brunswick, New Jersey
- MyCentralJersey Video: See inside The Raye by Vermella on Route 1
- Google News: The Raye by Vermella New Brunswick
Author: Construction TX News
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