Camden sits across the river from Philadelphia, surrounded by some of the most desirable suburbs in South Jersey. Between them, investors find infill lots in the city and scarce teardown sites in towns like Collingswood and Cherry Hill.
In short: LendingStreet finances ground-up construction of 1-8 unit investment property in Camden and Camden County suburbs such as Pennsauken, Collingswood, Haddon Township and Cherry Hill. Loans are sized on loan-to-cost, released in inspected draws, and priced per project. In New Jersey, property taxes and municipal approvals are the two issues that most often decide whether a build makes sense.
In the city, redevelopment has concentrated near the waterfront and the Rutgers-Camden and Cooper University Health Care campuses, around Cooper Grant and Lanning Square, with infill also in Cramer Hill, Parkside and East Camden. Many lots are vacant after demolitions.
In the suburbs, land is scarce. Collingswood, Haddon Township, Audubon and Haddonfield are mostly built out, so projects tend to be teardowns. Pennsauken, Gloucester City and Bellmawr have more modest lots, and Cherry Hill and Voorhees have larger parcels at higher prices.
| Area | Typical project | Watch for |
|---|---|---|
| Cooper Grant, Lanning Square | Rowhome or small multi-unit infill | Redevelopment plan rules |
| Cramer Hill, Parkside, East Camden | Single-family or duplex infill | Flood areas, rent support |
| Collingswood, Haddon Twp, Audubon | Teardown rebuilds | Land cost, zoning board relief |
| Pennsauken, Cherry Hill, Voorhees | Duplexes, spec homes | Taxes and approvals |
We look at total project cost, meaning land, hard construction costs and soft costs such as plans, engineering, permits and fees, and size the loan as a share of that figure. That share is set per project.
Funds go out in stages after inspections confirm the work, not as a lump sum. Use the draw schedule calculator to map foundation, framing, rough-ins, drywall and finish against your budget so the cash you bring and the draws line up.
Rowhomes and twins define Camden's housing, so new attached homes and 2-4 unit buildings fit city blocks. In the suburbs, older capes and ranches on decent lots are torn down and replaced with larger single-family homes or, where zoning allows, duplexes.
Renters here include hospital and university staff and commuters to Philadelphia via the PATCO line, which runs through Collingswood, Haddonfield and Cherry Hill. Proximity to a PATCO station supports both rents and resale value.
Construction costs in South Jersey run closer to Philadelphia-area levels than to national averages, and union and prevailing-wage rules can apply on some publicly assisted sites. Get bids from builders who work locally and know the inspectors in the town you are building in.
Large parts of Camden are covered by redevelopment plans that set their own uses and design standards, so check which plan covers your lot. In suburbs, anything beyond a by-right single-family home may need planning or zoning board approval, and New Jersey's affordable housing obligations have pushed some towns to rezone sites for multi-unit use.
Parts of Cramer Hill, Waterfront South and areas along the Cooper River and Newton Creek are in mapped flood zones. New construction there must meet elevation standards, which adds foundation cost.
We fund investors and builders putting up 1 to 8 units in and around Camden, usually through an LLC, and you sign for the loan personally. Our investor loans are business-purpose loans on non-owner-occupied property.
Expect questions about your last few completed projects, your general contractor's license and insurance, and how the budget was built. Files missing plans or permits, or run by a first-time builder without an experienced GC, generally do not move forward.
New Jersey property taxes are among the highest in the country, and they vary widely by town. A new fourplex in a high-tax suburb can carry a bill that changes the rental math, so pull the municipal tax rate and estimate the assessed value of the finished building before you buy the land.
Building permits follow the New Jersey Uniform Construction Code. Many municipalities also require a certificate of occupancy or rental inspection before tenants move in, and some require landlord registration. Ask the town what it requires at the start.
This example is illustrative and not a quote. An investor builds four two-bedroom units on a lot zoned for multi-family near a major bus and rail corridor. Land costs $160,000, hard construction costs $780,000 and soft costs $80,000, for a total project cost of $1,020,000. For illustration the loan covers 75% of cost, or $765,000, and the investor brings $255,000 plus closing costs; actual LTC is set per project.
At completion the appraisal comes in at $1,100,000, with total rent of $7,800 a month. Refinancing into a DSCR loan at 75% of value gives $825,000, which pays off the $765,000 construction balance. With estimated principal and interest of about $5,628, taxes near $1,750 and insurance near $280, the monthly payment is about $7,658 and the ratio is about 1.02x.
The tax line here is roughly six times the insurance line. A town with a lower rate would lift the ratio without changing anything else.
| Item | Amount |
|---|---|
| Land | $160,000 |
| Hard costs | $780,000 |
| Soft costs | $80,000 |
| Total project cost | $1,020,000 |
| Construction loan (75% of cost, illustrative) | $765,000 |
| Investor cash before closing costs | $255,000 |
| Completed value | $1,100,000 |
| DSCR refinance (75% of value) | $825,000 |
| Monthly rent | $7,800 |
| Estimated principal and interest | $5,628 |
| Taxes and insurance | $2,030 |
| Estimated DSCR | About 1.02x |
Most investor builds here are held. Rents near PATCO and the hospitals are strong, and a DSCR refinance on completed rent repays the construction loan.
Teardown rebuilds in Collingswood or Haddon Township are also sold as spec homes, since buyers pay a premium for walkable towns with new houses.
Send the address, plans, budget and timeline through the form below or call (877) 298-1001. LendingStreet reviews Camden builds directly and comes back with a term sheet that shows the loan amount, LTC and draw structure.
Both. City projects are mainly infill on vacant lots; suburban projects are often teardowns or small multi-unit builds.
A great deal. They are high and vary by municipality, and they count in the DSCR payment when you refinance. Estimate the finished assessment before buying land.
Possibly, when an experienced general contractor is on the project and plans and permits are in place.
Many are. The city publishes its redevelopment plans; check which one covers your lot and what it allows.
Many New Jersey towns require a certificate of occupancy and some require landlord registration. Ask the municipality.
On loan-to-cost. We add up land, construction and soft costs and lend a share of that total, set for the specific project.
No. Funds are released through a draw schedule after inspections confirm each stage of work.
Our New Jersey construction loans page covers the state.
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