Scotland Road Multifamily Development - Orange, NJ

Asset type: Apartment · Location: Orange, New Jersey

This is a shovel-ready 78-unit, 6-story, ground-up Class A market-rate multifamily project on 21,876 SF of land with a total development cost of $29.93 million ($383,735 per unit). Construction is ready to begin immediately—the $21 million interest-only bank construction loan (70% LTV, 9.80% rate) has been approved and is cleared to close. Key Highlights Strong local tailwinds : Orange is aggressively redeveloping with PILOT awards; market occupancy sits at 94% with newer Class A comps averaging 98%. Sponsor skin in the game : ECA has already deployed over $5.7 million of equity. Fast stabilization : Projected at just 6 months post-completion given the demand and low vacancy. Attractive unit mix & rents : Studio / 1 / 2-bedroom units with engineered hardwood, in-unit W/D, private terraces on select units, and 58-space garage parking. Pro forma : $2.20M NOI → 7.35% YOC | $38.23 psf average annual rent. Deal-Level Return Projections: (3-5 year hold, conservative 5.5% exit cap) Levered IRR: 26.01% Equity Multiple: 2.42x We are accepting a total of $1.2 million in LP equity to complete the capital stack. Planned exit via sale in year 3.