Scale Lending funds $243m in New Jersey multifamily loans 

The Slate Property Group lending arm is financing the development of two Jersey City towers. 

Scale Lending, the debt financing arm of New York-based manager Slate Property Group, closed two cross-collateralized loans totaling $243 million for two multifamily buildings in Jersey City’s Journal Square neighborhood.

The firm worked with sponsor Namdar Group on both financings, originating a $160 million construction loan for its mixed-use development at 626 Newark Avenue. The property is slated to comprise 576 rental apartments, with additional retail and office space. The 27-story tower is expected to be delivered in 2026.

Scale also funded an $83 million bridge loan for nearby 26 Van Reipen, with the sponsor using the financing to retire $73 million in construction debt and fund the project’s lease-up and stabilization period. 26 Van Reipen was completed in 2023 and has been master leased to CMPND, an apartment and co-working community.

Over the past six months, Scale has deployed $403 million across three loans to Namdar Group in the Journal Square market. In July 2023, the debt fund originated a $160 million bridge loan for Namdar’s multifamily development at 618 Pavonia.

Scale has a positive outlook for the Journal Square submarket based on its underlying demand for multifamily assets.

“The market’s appetite for multifamily in Journal Square far exceeds available supply and is the single most important demand driver that continues to attract us back to the neighborhood,” said Martin Nussbaum, co-founder and principal at Slate Property Group. He added Namdar Group is an active developer with a track record specifically in this neighborhood.

Daniel Ridloff, managing director of Scale, also notes the firm has utilized its lending relationships to work with trusted sponsors on high-quality multifamily properties as many traditional lenders remain on the sidelines.

With a focus on multifamily market, Scale also finalized a $46 million bridge loan for Arris Grand, a newly completed apartment building in Brooklyn’s Clinton Hill neighborhood, prior to the two New Jersey deals.

Greystone Capital Advisors’ Drew Fletcher and Bryan Grover arranged both loans.