Prism Capital Partners’ mixed-use redevelopment of the former Art Color factory in Dunellen recently secured $53.9 million in financing.

The Nutley-based, privately held owner and operator announced the fixed-rate loan Jan. 17. KeyBank Real Estate Capital represented Prism via an exclusive agreement to procure the seven-year loan from New York Life Real Estate Investors.

Located at 100 S. Washington St. in the Middlesex County municipality, The Nell is adjacent to downtown Dunellen and directly across from the NJ Transit train station. The 252-unit reinvention of the property hit lease-up late last summer after opening in December 2022. The final residential building was delivered in August 2023.

“The opportunity here was to lock in the rate on takeout financing while the property was still in lease-up,” Prism Capital Partners Principal Partner Eugene Diaz said. “We are thrilled with the choice of lender and with KeyBank’s success in what has been a turbulent market.”

“We have enjoyed a longstanding relationship with Prism,” said KeyBank Senior Mortgage Lender Rodney Shenman, who led the process along with Greg Halvorson, vice president, Investor Placement. “This was a great opportunity for us to represent first-class local sponsorship for a Class A property that symbolizes a strong beacon of development for Dunellen.”

According to Shenman, the financing allows Prism to take out its construction financing with additional proceeds at closing plus an opportunity to earnout future dollars.

The multifamily component at The Nell offers one- and two-bedroom residences with:

• 9-foot ceilings
• open layouts
• plank flooring
• chef-inspired kitchens
• in-home washer/dryers

Amenities at the property include: a clubhouse with fitness center, yoga room and community kitchen as well as an outdoor resort-style pool with bar, televisions and lounge seating. You can take a look at some of The Nell’s interiors in this slideshow.

Situated in Dunellen’s redevelopment area, according to the city’s website, 58 of The Nell’s rental units are set aside as affordable homes. The property also includes 130 for-sale townhomes developed by K. Hovnanian Cos.

The Nell’s retail residents

The commercial component of The Nell is housed in a recently finished 9,300-square-foot, free-standing retail building. In December, retail tenants Blue Foundry Bank and Kessler Rehabilitation Center started welcoming customers.

Hamilton-based Spiezle Architectural Group provided design for the building. It features peaked roofs, contrasting trim and signage that invokes vintage transit-themed elements with a modern twist. “The Nell was carefully designed to complement its neighborhood, and the retail component was planned to serve the entire Dunellen community,” Robert Fourniadis, senior vice president, Residential, Prism, said in late 2023. “We are thrilled to welcome these two well-respected brands, both of which provide essential services.”

From its 2,757-square-foot space, Blue Foundry Bank offers personal and business checking as well as drive-thru service. According to an announcement from the Rutherford-based financial institution, its location at The Nell is its first in Middlesex County.

The Bank said the open-concept design created by DMR Architects reflects its innovative nature.

Kessler Rehabilitation offers occupational and hand therapy, sports medicine, workplace injury treatment and prevention, and specialized rehabilitation services from its 2,870-square-foot outpost.

In December, Fourniadis noted that 3,700 square feet of space was available at the commercial building. According to him, it is best suited for a coffeehouse or convenience store “catering to commuters and neighborhood residents looking for grab-and-go options.”

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