Asbury Park is set to receive $6M condos. Is the sleepy beach town ready for them?

Developer Jay Sugarman is planning a $1B redevelopment of the waterfront, which includes a members-only beach club

Tri-State /
Mar.March 27, 2019 08:30 AM
iStar CEO Jay Sugarman and a rendering of the Asbury Ocean Club

iStar CEO Jay Sugarman and a rendering of the Asbury Ocean Club

In Asbury Park, New Jersey, the oceanside town known for Bruce Springsteen and good surf, a developer is betting he can sell $6 million condominiums in a place that still has a high poverty rate and low median house price.

Jay Sugarman, who leads the New York-based real estate investment trust iStar, has bought 35 acres of land in the town, and is planning a $1 billion redevelopment there, with up to 20 new projects to be built over the next decade, according to The Wall Street Journal.

One of those towers, the 17-story Asbury Ocean Club, is set to open in the summer. Its 130 residential condominiums are priced from $1 million to $6 million and will feature a spa and terraces.

Whether these price points are achievable remains to be seen. While Asbury Park has undergone significant redevelopment over the past decade, it still has a high poverty rate, and its median house price hovers around $362,000, according to Zillow.

The demand for luxury residential condos may be premature, as an oversupply exists in Manhattan, which has recorded a steady decline in sales over the past three years.

iStar, which is developing in Coney Island and also recently bought an office tower in Jersey City, has reportedly spent $300 million in Asbury Park on a hotel and a renewed bowling alley with an attached music venue. But some residents feel sidelined by the glitzy redevelopment, which includes a members-only beach club.

“We’re saying create this economic driver, bring those tax revenues to the town,” Sugarman told the Journal. “Then you have a suite of options to play with that you didn’t have before.” [WSJ] — David Jeans 


Related Articles

arrow_forward_ios
Tommy Hilfiger and his recently sold estate in Greenwich, CT. (Getty, Janet Milligan)

Tommy Hilfiger’s Greenwich estate sells for $45M

Tommy Hilfiger’s Greenwich estate sells for $45M
Jenna Ryan was part of a group who flew on a private plane from Denton, TX, to Washington, D.C., with the intention of joining the protestors (Twitter.com/DotJenna)

Texas Realtor faces criminal charges for role in Capitol attack

Texas Realtor faces criminal charges for role in Capitol attack
Kirk Goodrich, president of Monadnock Development, is opposed to the bill sponsored by Bran Lander. (Getty, Monadnock Development)

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers
Porch CEO Matt Ehrlichman (iStock)

Porch snaps up four startups for over $122M

Porch snaps up four startups for over $122M
Nir Meir Asks Court to Stop Eviction (Google Maps)

Nir Meir seeks to throw out Hamptons ejection suit

Nir Meir seeks to throw out Hamptons ejection suit
Robert Frank with 1021 Park Avenue and Ben Lambert with 28 Laight Street (Getty, Google Maps)

Who’s buying and selling Manhattan homes? Last month’s notable deals

Who’s buying and selling Manhattan homes? Last month’s notable deals
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)

Santa Monica mega-portfolio officially hits market

Santa Monica mega-portfolio officially hits market
arrow_forward_ios

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

Loading...