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
45 South Grove St in East Orange (Rendering via Progress Capital)
Hero Construction lands $20M loan to build East Orange apartments
Hero Construction lands $20M loan to build East Orange apartments
Mayor Steven Fulop (Getty, iStock)
Jersey City to provide up to $10K more rent relief per tenant
Jersey City to provide up to $10K more rent relief per tenant
The Birch Group CEO Mark Meisner and 700 Alexander Park Drive (LinkedIn)
Birch Group buys Princeton office portfolio from BentallGreenOak
Birch Group buys Princeton office portfolio from BentallGreenOak
Jared McClain of NCLA and Gov. Phil Murphy (Photos via iStock, NCLA, Getty)
NJ tenants can pay rent with security deposits: court
NJ tenants can pay rent with security deposits: court
The share of vacant sublease space in the total vacancy was 16.5 percent, the highest since 2005. (iStock)
Office vacancy rate in New Jersey nears 19%
Office vacancy rate in New Jersey nears 19%
Harbor Group’s Jordan Slone (right) and Cammeby's International founder Rubin Schron (iStock)
Harbor Group, Cammeby’s team up on $1B NJ apartment buy
Harbor Group, Cammeby’s team up on $1B NJ apartment buy
Suburban homebuying frenzy rages on even as NYC reopens
Suburban homebuying frenzy rages on even as NYC reopens
Suburban homebuying frenzy rages on even as NYC reopens
Mack-Cali Realty CEO Mahbod Nia and River Centre in Red Bank (Mack-Cali)
Mack-Cali offloads Red Bank office complex for $84M
Mack-Cali offloads Red Bank office complex for $84M
arrow_forward_ios

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

Loading...