As the end of the year approaches, Jersey City’s residential construction boom shows no signs of a holiday break.
Lions Group NYC landed $200 million in construction financing to fund work at Homestead Gateway, Bloomberg reported. The 360-unit project is being developed at 701 Newark Avenue in the city’s Journal Square neighborhood.
Goldman Sachs provided the financing for the 34-story development through its Urban Investment Group. The financing takes the shape of a construction loan, bridge facility, low-income housing tax credit equity and other public capital.
A JLL team including Jimmy Cochran, Nicco Lupo and Jillian Grzywacz advised on the financing deal. The developer previously scored a $90 million tax credit award through the state’s Aspire program.
Breaking ground this week, Homestead Gateway will include 270 market-rate units and 90 affordable housing units on the former site of a municipal parking lot, according to Multi-Housing News.
Amenities will include a rooftop lounge, fitness center, bicycle storage and workspaces. There will also be 3,000 square feet of ground-floor retail space in the building, which is being designed by C3D Architecture.
“We are very proud to be building this project, which brings both market rate and affordable housing, provides hundreds of union jobs and completes Homestead Place, a pedestrian walkway that will give easy Manhattan access to thousands of PATH train commuters,” Lions Group NYC’s Aaron Shirian told The Real Deal.
While cheaper than its Manhattan neighbor, Jersey City is emerging as one of the nation’s most expensive rental markets. Last month, the average rent was $3,152, according to Apartments.com, 93 percent higher than the national average. Apartment rents rose 2.4 percent in the last 12 months, according to a recent report from PwC and the Urban Land Institute.
Every developer wants a piece of the action. Over the summer, Namdar Group secured $358 million in construction financing from Tyko Capital for two mixed-use projects in Journal Square, totaling 1,126 units.
Kushner Companies is also among those investing heavily in the neighborhood.
— Holden Walter-Warner
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