Project Brief · Confidential
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Nexus Lofts — Project Brief
Full project brief — 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 · Seeking Equity
Nexus Lofts

Class-A multifamily ground-up development on 14 acres in Lebanon Borough, NJ — fully entitled with construction commencing August 2026.

📍 Lebanon Borough, New Jersey
📐 14.0 Acres · Fully Entitled
🏗️ Construction: Aug 2026 – Jan 2028
📋 Status: Pre-Development
Total Project Cost
$106,405,260
Class-A Multifamily · Lebanon Borough, NJ
Equity Required$31,921,578
Debt (Construction Loan)$74,483,682
Equity % of Total30.0%
Stabilized NOI$4,850,963
OpEx Ratio31%
Lease-Up Period8 Months
Exit StrategySale of Stabilized Asset
01
Overview
Project Summary

Nexus Lofts is a Class-A multifamily ground-up development in Lebanon Borough, New Jersey. The 14-acre fully entitled site is positioned in one of Hunterdon County's fastest-growing residential corridors — offering exceptional access to the Route 78 interchange, proximity to Clinton's vibrant village center, and growing demand from remote and hybrid workers seeking quality suburban communities with good highway connectivity.

Lebanon Borough is situated within the Lebanon Township/Clinton area of Hunterdon County — a region experiencing strong demographic growth driven by households relocating from higher-cost Essex and Union County markets. Hunterdon County consistently ranks as one of New Jersey's wealthiest counties with median household incomes significantly above state averages, supporting premium rental rate potential.

Axria's vertically integrated model enables in-house construction delivery through Sigma Construction, targeting a 17-month construction period (August 2026 – January 2028) followed by an 8-month lease-up. Stabilized NOI of $4,850,963 is projected in Year 5 (2030), with the asset to be sold upon stabilization to an institutional buyer.

02
Site
Property & Site Details
LocationLebanon Borough, Hunterdon County, NJ
Property TypeClass-A Multifamily Ground-Up
Site Area14.0 Acres
Entitlement StatusFully Entitled ✓
Current ConditionPre-Development Stage
Land Acquisition$16,250,000
Construction StartAugust 2026
Construction EndJanuary 2028
Construction Period~17 months
Lease-Up Period8 months
Stabilization Target2029/2030
SubmarketLebanon / Hunterdon County
Hunterdon County Context
Hunterdon County, NJ consistently ranks among the top 5 wealthiest counties in the United States by median household income (exceeding $120,000). Lebanon Borough is located directly along Route 78 — one of New Jersey's principal east-west corridors — providing exceptional access to the Lehigh Valley, Summit/Chatham employment markets, and Newark/New York City. The area benefits from strong school system ratings, preserved open space, and growing lifestyle amenity offerings that attract affluent suburban renters.
03
Capital Stack
Sources & Uses of Capital
Sources of Capital
Equity 30%
Debt 70%
Equity $31.92M
Debt $74.48M
Equity$31,921,578
Debt (Construction Loan)$74,483,682
Total$106,405,260
Uses of Capital
Land Acquisition Price$16,250,000
Closing Costs$67,428
Hard Costs (Construction)$72,172,725
Soft Costs (Arch, Legal, Permits)$9,393,840
Contingency$2,446,997
Capitalized Interest$4,905,948
Construction Loan Fees$1,117,255
Operating Shortfalls$51,068
Total Uses$106,405,260
04
Financials
Pro Forma & Assumptions
Projected Revenue (Stabilized)
$4,850,963
Effective Gross Revenue — Stabilized
Net Operating Income
$4,850,963
Stabilized NOI — Year 5 (2030)
Operating Expense Ratio
31%
Applied to Effective Gross Revenue
Lease-Up / Absorption
8 Months
From construction delivery
Pro Forma Line Item Year 3 — Dec 2028 Year 4 — Dec 2029 Year 5 — Dec 2030
Effective Gross Revenue$4,150,584$5,258,616$7,017,313
Total Operating Expenses (31%)($1,355,990)($1,516,362)($2,166,350)
Net Operating Income$2,794,594$3,742,253$4,850,963
Financial Highlights
The project's shorter construction timeline (17 months vs. industry average 24–36 months) benefits from Axria's in-house construction management, reducing capitalized interest to $4.9M — well below a typical third-party GC model. Year 3 (Dec 2028) represents the first stabilized calendar year post lease-up, with NOI growing from $2.79M to $4.85M in Year 5 as rent escalation compounds. The higher land cost ($16.25M) reflects Hunterdon County land values; this is offset by the premium rental rates achievable in this high-income market.
05
Timeline
Development Schedule
Current
Pre-Development / Entitlements Complete
All entitlements and zoning approvals secured in Lebanon Borough. Land identified and agreed.
Q3 2026
Land Acquisition & Construction Start
Land acquisition at $16,250,000 (reflecting premium Hunterdon County land values). Closing costs $67,428. Construction loan closing and groundbreaking — August 2026.
Aug 2026 – Jan 2028
Construction Period (~17 months)
Axria in-house construction management. Total hard costs $72.2M including all vertical construction, MEP, finishes, and site work across the 14-acre site.
January 2028
Delivery & TCO
Certificate of Occupancy. Pre-leased units commence move-in. Active marketing program accelerates absorption.
Jan 2028 – Sep 2028
Lease-Up Period (8 months)
8-month absorption assumption based on comparable Hunterdon County Class-A lease-up data. Strong demographic demand in Lebanon/Clinton area supports rapid fill.
2028 – 2030
Stabilization & Exit
Asset stabilizes at NOI of $4.85M (Year 5, 2030). Sale of stabilized asset to institutional multifamily buyer.
06
Market
Market Context & Demand Drivers

Hunterdon County Demographic Strength

Hunterdon County is one of the wealthiest counties in the United States, with a median household income exceeding $120,000 and one of the lowest poverty rates in New Jersey. The Lebanon Borough area has experienced net population inflow from households relocating from Essex, Union, and Middlesex County — seeking lower density, better school systems, and preserved natural environments while maintaining commute access via Route 78.

Route 78 Corridor Access

Lebanon Borough is positioned directly along the I-78 corridor — one of New Jersey's principal east-west arteries. This enables residents to commute west to Lehigh Valley employment markets (Amazon, PPL, B. Braun) and east to Summit/Chatham, the Route 22 corridor, and Newark/New York City. The Route 78/Route 22 interchange proximity provides exceptional multi-directional accessibility.

Limited Class-A Supply

Lebanon Borough and the surrounding Hunterdon County market have very limited Class-A multifamily supply. Existing rental inventory is predominantly older workforce housing. Nexus Lofts will be the area's premier new Class-A community, commanding significant rent premiums over existing comparables and benefiting from first-mover positioning in an undersupplied luxury rental segment.

Exit Cap Rate Environment

Hunterdon County suburban multifamily assets have demonstrated strong institutional buyer interest given the demographic profile and scarcity of available product. At a stabilized NOI of $4.85M, Nexus Lofts is expected to command an exit valuation of approximately $88–107M at prevailing 4.5–5.5% cap rates, delivering substantial equity multiples to early investors.

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⚠ 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.

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