In New Jersey, rentals still trump condos

Developments across the Hudson fetch only half NYC's price per square foot

New York /
Mar.March 20, 2014 04:20 PM

Condominiums may be all the rage in New York City, but across the river in New Jersey rentals remain the order of the day.

The financial drought following the recession spurred Garden State developers to focus almost exclusively on rental properties, the Jersey Journal reported. And though the most painful pinch is waning, the market isn’t expected to return to its past strength for a few years yet.

“It’s too risky,” Eric Silverman, who has developed a number of downtown Jersey City properties, told the Journal. “It’ll be a while before the lenders forget.” In New York City, he said, developers can fetch more than $1,500 per square foot, enabling investors to recoup their cash. But with prices in Jersey City clocking in at half that, the same opportunities don’t exist.

KRE Group’s Jonathan Kushner told the Journal he’s “starting to think about” condominium projects west of the Hudson, but not on the scale of his current $666 million rental project in Journal Square, which upon completion will hold 1,840 units spread among three towers.

Still, some industry-watchers are confident that the North Jersey condominium market will rebound, as the Hoboken and Jersey City markets didn’t experience the same post-recession tumble as others across the country.

“People want to live in a community,” David Wolfe, an attorney who handles real estate cases for Livingston-based firm Skoloff Wolfe, told the Journal. “And for sale housing is part of the mix.” [Jersey Journal]Julie Strickland


Related Articles

arrow_forward_ios
Hudson’s Bay Company CEO Richard Baker and 609 North Avenue W in Westfield, NJ (Cornell, Google Maps)
Shuttered Lord & Taylor targeted for Union County redevelopment
Shuttered Lord & Taylor targeted for Union County redevelopment
Marcus Partners CEO Paul Marcus and 18-20 Harmich Road in South Plainfield, New Jersey (Getty Images, Lee & Associates, Marcus Partners)
Private equity firm buys South Plainfield warehouses for $37M
Private equity firm buys South Plainfield warehouses for $37M
31-35 Styertowne Road in Clifton and Longpoint’s Managing Partner Dwight Angelini (Google Maps, Longpoint)
Longpoint buys Passaic County warehouses for $18.5M
Longpoint buys Passaic County warehouses for $18.5M
711 Beach Avenue in Cape May, New Jersey and Icona president Eustace Mita (Google Maps, Drexel University)
Luxury brand planning $150M hotel in Cape May
Luxury brand planning $150M hotel in Cape May
Hovnanian's Ara Hovnanian and Crystal Lake in Oakland, New Jersey (Facebook, Hovnanian Enterprises)
Hovnanian plans 151-unit project in Bergen County
Hovnanian plans 151-unit project in Bergen County
Thor Equities' Joseph Sitt (Joseph Sitt, Getty)
Thor completes hat trick of NJ industrial acquisitions
Thor completes hat trick of NJ industrial acquisitions
Rising sea levels
Climate change’s higher tides could threaten $34B of coastal real estate
Climate change’s higher tides could threaten $34B of coastal real estate
A photo illustration of Triple Five Group's Paul Ghermezian (Getty Images, Triple Five Group)
American Dream owner Triple Five Group hit with sexual harassment suit
American Dream owner Triple Five Group hit with sexual harassment suit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...