Project Brief · Confidential
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Luxury Lofts — Project Brief
Full project brief for the 342-unit Bound Brook flagship — site details, capital stack, construction timeline, market analysis, and pro forma. Confidential to authorized investors.
Password available from Junaid Ahmed — junaidA@axria.com
Project Brief · Class-A Multifamily · 342 Units · Bound Brook Flagship
Luxury Lofts

Axria's largest Bound Brook development — a 342-unit Class-A mixed-use residential community at 25 W Main Street. Seven residential floors of studios, one-bedrooms, and two-bedrooms with ground-floor retail. Construction commences August 2027.

📍 25 W Main Street, Bound Brook, NJ 08805
📐 1.3 Acres · Block 6 · Lots 8–19 · Fully Entitled
🏗️ Construction: Aug 2027 – Aug 2029
🏠 342 Residential Units · Floors 4–10
Total Project Cost
$56,717,111
342-Unit Class-A Multifamily · Bound Brook, NJ
Equity Required$18,036,041
Debt (Construction Loan)$38,681,070
Equity % of Total31.8%
Stabilized NOI$4,651,989
OpEx Ratio25%
Lease-Up Period8 Months
Total Units342 Units
Exit StrategySale of Stabilized Asset
01
Overview
Project Summary — Bound Brook's Largest Residential Project

Luxury Lofts at 25 West Main Street is Axria's largest Bound Brook multifamily development and the most complex project in the Bound Brook Portfolio. Situated on 1.3 acres (61,759.36 SF) in the heart of Bound Brook's designated redevelopment zone (Block 6, Lots 8–19), the development will deliver 342 Class-A residential units across seven residential floors (Floors 4–10), anchored by ground-floor retail that contributes to Main Street vibrancy and walkability.

The project brings to life a new design program of 342 units — a significant scale-up from an earlier 75-unit design that was modified to deliver maximum density and community impact appropriate to the site's redevelopment zone designation. The unit mix spans Studios (84 units), One-Bedrooms (202 units), and Two-Bedrooms (56 units) — providing a balanced product offering across the full renter income spectrum.

Construction is scheduled to begin August 2027 and conclude by August 2029 — a 24-month construction program reflecting the building's scale. An 8-month lease-up follows, with full stabilization targeted in Year 3 (2030). The 8-year pro forma (Years 3–10, 2030–2037) shows NOI growing from $2.43M to $4.65M through income escalation and full occupancy.

Axria is seeking $18.04M in equity (31.8% of total cost) to complement $38.68M in construction debt financing. Exit is via sale of the stabilized 342-unit asset to an institutional multifamily buyer — a transaction scale that attracts the deepest pool of institutional capital in New Jersey's multifamily market.

02
Site
Property & Site Details
Property Address25 W Main Street, Bound Brook, NJ 08805
Block / LotsBlock 6 · Lots 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19
Site Area1.416 Acres (61,759.36 SF)
ZoningBound Brook Redevelopment Zone
Entitlement StatusFully Entitled ✓
Development TypeResidential Mixed-Use
Residential FloorsFloors 4 through 10 (7 floors)
Ground FloorRetail + Amenity / Lobby
Construction StartAugust 2027
Construction EndAugust 2029
Construction Period24 months
Lease-Up Period8 months
Stabilization YearYear 3 — 2030
Total Residential Units342 Units
Avg Units per Floor~48–49 units
Land Acquisition$6,900,000
03
Unit Mix
342-Unit Residential Program — Floor-by-Floor
Studio
84
24.6% of total units
500 SF units3 / floor
550 SF units2 / floor
600 SF units7 / floor
Size Range500 – 600 SF
One Bedroom
202
59.1% of total units
700 SF units2 / floor
714 SF units13–14 / floor
750 SF units13 / floor
Size Range700 – 750 SF
Two Bedroom
56
16.4% of total units
950 SF units5 / floor
1,020 SF units1 / floor
1,110 SF units2 / floor
Size Range950 – 1,110 SF
Studio 24.6%
One Bedroom 59.1%
2BR 16.4%
Floor Studio One Bedroom Two Bedroom Units / Floor
500 SF550 SF600 SF 700 SF714 SF750 SF 950 SF1,020 SF1,110 SF
Floors 1–3Lobby · Parking · Retail · Amenities (Non-Residential)
Floor 43272131351248
Floor 53272141351249
Floor 63272141351249
Floor 73272141351249
Floor 83272141351249
Floor 93272141351249
Floor 103272141351249
Subtotals 211449 149791 35714 342
Type Total 84 Studios 202 One-BR 56 Two-BR 342
Unit Mix Strategy
The 342-unit program is dominated by one-bedroom units (59.1%) — the core product type most sought by young professionals, couples, and remote workers in the Bound Brook market. Studios (24.6%) provide an accessible price point driving rapid lease-up, while two-bedroom units (16.4%) capture family renters and roommate pairs who represent longer-tenure residents. This distribution optimizes both lease-up velocity and long-term income stability. The range of SF within each type (e.g., 500/550/600 SF studios) allows pricing flexibility to capture the full demand curve within each unit category.
04
Capital Stack
Sources & Uses of Capital
Sources of Capital
Equity 31.8%
Debt 68.2%
Equity $18.04M
Debt $38.68M
Equity (Seeking)$18,036,041
Debt (Construction Loan)$38,681,070
Total$56,717,111
Uses of Capital
Land Acquisition Price$6,900,000
Closing Costs$207,000
Hard Costs (Construction)$44,421,053
Soft Costs (Arch, Legal, Permits)$1,896,180
Contingency$1,157,931
Capitalized Interest$1,715,425
Construction Loan Fees$386,811
Operating Shortfalls$32,712
Total Uses$56,717,111
05
Financials
8-Year Pro Forma — 2030 through 2037
Stabilized NOI (Year 10)
$4,651,989
Year 10 — 2037
Operating Expense Ratio
25%
Lowest OpEx in Axria's active pipeline
Lease-Up Period
8 Months
From construction delivery
Annual NOI Growth
~3%
Y3 $2.43M → Y10 $4.65M
Line Item Y3 — 2030 Y4 — 2031 Y5 — 2032 Y6 — 2033 Y7 — 2034 Y8 — 2035 Y9 — 2036 Y10 — 2037
Effective Gross Revenue$3,470,000$5,200,000$5,360,000$5,520,000$5,680,000$5,850,000$6,030,000$6,210,000
Total Operating Expenses (25%)($1,040,000)($1,310,000)($1,340,000)($1,410,000)($1,440,000)($1,480,000)($1,520,000)($1,560,000)
Net Operating Income$2,430,000$3,890,000$4,010,000$4,110,000$4,240,000$4,370,000$4,510,000$4,650,000
Financial Highlights — 8-Year View
The 8-year NOI progression from $2.43M (Year 3, 2030 — initial stabilization year) to $4.65M (Year 10, 2037) reflects the compounding power of annual rent escalation on 342 units. The 25% OpEx ratio is the lowest in Axria's active pipeline — reflecting the efficiency achievable at 342-unit scale where fixed costs (management, maintenance, admin) are spread across a larger unit count. The construction cost per unit works out to approximately $165,850/unit ($56.7M ÷ 342) — competitive for Class-A new construction in the Bound Brook market. At a 5% exit cap rate on Year 5 stabilized NOI of $4.01M, the asset value reaches approximately $80M — representing a substantial return on the $18.04M equity investment.
06
Timeline
Development Schedule
Current
Pre-Development · Fully Entitled
25 W Main Street is fully entitled under the Bound Brook Redevelopment Plan. Block 6, Lots 8–19 assembled and approved for 342-unit mixed-use residential development. New design (342 units) superseded the prior 75-unit design, substantially increasing density and viability.
2026 – Q3 2027
Pre-Construction & Equity Raise
Equity raise completion ($18.04M). Construction loan closing ($38.68M). Final design development and permit issuance. Site preparation begins.
August 2027
Groundbreaking · Construction Commences
Land acquisition closes at $6,900,000. Full construction mobilization. Axria's in-house Sigma Construction team begins 24-month vertical construction program.
Aug 2027 – Aug 2029
Construction Period (24 months)
Hard costs of $44.42M across foundation, structure (Floors 1–10), MEP systems, unit finishes, ground-floor retail buildout, structured parking, amenity spaces, and landscaping. Soft costs $1.90M for architecture, engineering, permits, and legal.
August 2029
Construction Delivery · TCO Issuance
Temporary Certificate of Occupancy. Pre-leased residents begin move-in. Active lease-up marketing commences across all 342 units simultaneously with phased floor releases.
Aug 2029 – Apr 2030
Lease-Up Period (8 months)
8-month absorption. Studios expected to lease fastest; one-bedrooms follow with 1BR 714 SF being the dominant product type. Two-bedrooms capture family renters and roommate pairs.
2030 – 2037+
Stabilized Operations & Exit
Asset stabilizes at NOI of $2.43M (Year 3, 2030) growing to $4.65M (Year 10, 2037). Institutional exit at stabilization — likely Year 5 (2032) or later depending on market conditions and investor return targets.
07
Market
Demand Drivers & Investment Thesis

Bound Brook Revitalization Momentum

Bound Brook's borough government and Somerset County have been actively investing in the Main Street corridor's transformation. The Bound Brook Redevelopment Plan encompasses much of the Main Street commercial spine, enabling dense mixed-use development on previously underutilized parcels. This creates a government-sponsored tailwind for property values and rental demand as public investment in streetscape, transit, and infrastructure continues.

NJ Transit Raritan Valley Line

Bound Brook station is within walking distance of 25 W Main Street, providing direct Raritan Valley Line service to Newark Penn Station and connections to New York Penn Station. This transit connectivity is a primary demand driver for young professionals who work in Newark or commute to New York — the same demographic that anchors Class-A rental demand in this price point. One-seat ride capability to major employment centers supports strong renter depth.

Scale Advantage: 342 Units

At 342 units, Luxury Lofts achieves a scale that enables institutional operational management — typically only available to communities of 100+ units. This scale also expands the exit buyer universe significantly, as large family offices, open-end core funds, and institutional multifamily platforms specifically seek 200+ unit assets in TOD locations as add-to-portfolio acquisitions. Scale is a core investment thesis advantage.

Coordinated Portfolio Advantage

As the cornerstone of Axria's Bound Brook Portfolio (9 sites total), Luxury Lofts benefits from Axria's coordinated multi-site strategy. Co-development with Times Square Lofts at 38-40 W Main Street enables shared construction resources, coordinated marketing, and portfolio-level lease-up momentum. A single developer controlling multiple proximate assets can create a branded residential district — driving premium rents and institutional buyer interest across all assets.

Axria's Complete Portfolio

Explore all 34 completed projects in Axria's track record, or return to the full active pipeline overview.

⚠ Confidential — Authorized Investors Only
Investment Contact
This project brief is prepared by Axria for informational purposes to authorized investors and advisors only. All financial projections are forward-looking and subject to market conditions, construction outcomes, and other risk factors. Investors should conduct independent due diligence prior to any investment commitment.

Junaid Ahmed — Vice President, Axria · junaidA@axria.com · +1 281 425 9981
Axria Headquarters — 399 Hoes Lane, Piscataway, NJ 08854 · +1 732 809 8000 · info@axria.com