Open land is vanishing on New Jersey’s Gold Coast. The area across from Manhattan is rapidly filling up, and developers are now looking inland for new places to build to house the young professionals and empty nesters opting for Garden State condominiums and rentals.
Downtown development has come to Morristown, the suburban county seat of Morris County and an economic hub of northwestern New Jersey. The number of condo and rental developments has grown steadily in the last several years, giving a low-key urban vibe to the town green in this historic Revolutionary War community that once gained fame as the temporary home of George Washington and his troops.
Restaurants, shops and offices line the green, along with a Century 21 department store. Morristown now rivals Hoboken as a nightlife destination for New Jersey’s young professionals, with bars dotting the downtown landscape and drawing large crowds on weekend nights. The population is projected to grow more than 10 percent by 2010.
“The younger people come into Morristown because we have nightlife,” said Gary Molner, manager of the Morristown East office of Weichert Real Estate. “These people commute to the city.”
Applied Property Company, a longtime development presence in Hoboken and Jersey City, was the first builder to take an active interest in Morristown’s downtown. A decade ago, they built Chancery Square, a 131-unit apartment complex downtown. The building, built on a former parking lot, also contains 10,000 square feet of office space.
“It is a good community and it has been a phenomenal project,” said Michael Barry, president of Applied Property Company. “It has had full occupancy since it opened.”
Barry said transportation links were a main reason for his interest in Morristown and that other developers have followed suit. New Jersey Transit’s Midtown Direct train line runs into town, with the train station a short walk from the Green. Route 287 has two exits in the downtown area and connections to Routes 24 and 80 allow for easy vehicular access to northern and central New Jersey and Manhattan.
Molner said people moving into new condos make up a diverse group. The empty nesters are typically from Morris County, while the young professionals are a mix of Morris County natives and those who grew up in other parts of northern New Jersey and around the country. Morris County and surrounding areas are home to many law firms and pharmaceutical companies, along with other businesses. The presence of Morristown Memorial Hospital, a regional trauma center with a large cardiac unit, attracts many doctors and medical residents.
Prices in Morristown stabilized over recent months, said Molner, which he believes is part of the national downturn in the real estate market. He said prices have ranged from between $300,000 and $1 million for a condominium, depending on its size. Previously, condo prices appreciated sharply over the last several years.
Roseland Property Company has been working on the redevelopment of the former Epstein’s Department Store and the construction of the Transit Village project abutting the train station, one of the largest projects in town. When Epstein’s closed several years ago, it was determined the site, which consists of nine interlocking buildings across the street from the Village Green, did not have a good layout for office use.
The plan now calls for the demolition of the existing buildings and parking lots, which is occurring now. In its place will be 70,000 square feet of retail space, 116 condos, 130 rental apartments, nine smaller townhouses and 16 larger townhouses.
“It is a local buyer and Morristown-to-New York commuter,” Jonathan Stein, a partner of Roseland, said of the future residents of the Epstein’s site. “They will be active users of the Green. It will be a sophisticated buyer and rental group.”
The first group of townhouses started construction at Epstein’s in mid-October with the remainder starting in mid-2007. Stein said the condo and rental units are expected to come on line within 18 to 22 months. Prices for the units have not been determined. Stein said there has been interest in the retail and, most likely, stores or cafes will take the spaces. He said one possibility is a Starbucks, which was dislodged from its former site in the old Epstein’s building.
Roseland is also partnering with Applied in the Vail Mansion condo project in the downtown district. This project will convert the site of the former Vail Mansion, the former town hall and former home of Theodore Vail, the first president of AT & T, to a 48-unit luxury condo complex.
Construction should be finished by the end of 2007. The project will have the new condo units built around the property, with the actual mansion used for office space and as a community building. The community features will include a fitness center and library.
“It is geared toward young professionals and empty nesters,” Barry said.