WATCHUNG, N.J. — JLL Capital Markets has arranged construction debt and equity for developers building Blue Hill at Watchung, a $102.9 million community in Watchung, 30 miles west of Manhattan. Completion is slated for 2026. The Sterling Properties Group and Danbro Properties are the developers. The property benefits from a 30-year PILOT (payment in lieu of taxes) agreement with the Borough of Watchung. PILOT agreements are government-sponsored incentives for developers to build housing, whereby the property owner pays an agreed-upon annual fee to a municipality versus traditional yearly property taxes.
JLL arranged the loan through First Citizens Bank and arranged an equity partnership with Marcus Partners. JLL Capital Market’s team was led by Senior Managing Directors Jim Cadranell and Jon Mikula and Vice President Michael Lachs.
The 230-unit community will feature six four-story buildings and a two-story clubhouse on 42 acres. The community will include 184 market-rate units and 46 affordable-housing units. Income caps were not disclosed for the affordable units. Amenities include a resort-style pool, outdoor lounge areas, a fitness center, private dining room, a billiards room, golf simulator, game room, coworking space and private garages.