Corzine: affordable housing too costly
Running for governor, Jon Corzine promised to develop 100,000 affordable houses and apartments in New Jersey over a decade. Now critics say the governor is moving too slow. Corzine says the cost of the plan, about $300 million over 10 years, is a significant obstacle, and he’s not sure the state “can afford it,” the Star-Ledger reported.
Affordable housing advocates are disappointed. They point to a study undertaken in 1987 that determined New Jersey would need at least 120,000 new affordable homes by 2014. As of last year, only about 38,000 had been built. At the same time, a new census report released last month said New Jersey’s median monthly housing costs are second only to California.
Struggling Hovnanian’s fire sale
Not so long ago, demand for its homes was so strong that Hovnanian Enterprises held lotteries to select buyers. But with prices sagging and the real estate slump worsening in parts of the country, the New Jersey-based home-building firm last month offered a three-day “Deal of the Century” nationwide discount promotion. The event included hundreds of new houses located in 19 states, and brought in 2,100 sales. In New Jersey, 17 Hovnanian development sites offered discounts, and buyers were able to save up to $149,600 on homes. Some units were discounted by as much as 20 percent. Market watchers worry Hovnanian’s promotion could further depress the value of other homes.
Parsippany vacancies fall, more speculative projects
Class A vacancies in Parsippany, New Jersey’s third-biggest office market, have fallen to 12.7 percent and are predicted to fall to 10 percent within a year to 18 months, the Daily Record reported. About a dozen companies are reportedly considering expanding or relocating there. The market appears to be strong enough to allow developers to move ahead with speculative projects with no tenants lined up.
The Gale Real Estate Services Company broke ground last month on a new 100,000-square-foot office building in Parsippany, the final piece in a four-tower complex, even though tenants have not signed any leases yet.
Atlantic City slated for tallest building
Revel Entertainment is moving forward with a huge hotel and casino project in Atlantic City, submitting a site plan to the city’s planning division last month. The plan calls for two 1,900-unit hotel towers, 150,000 square feet of casino space and 500,000 square feet of retail. The city council has raised the site’s height limit from 485 to 800 feet, allowing the towers to become the tallest buildings in the state, supplanting the Goldman Sachs tower in Jersey City.
400 apartments open in Jersey City
Panepinto Properties and Applied Development Company have opened a 36-story, 400-unit luxury rental building in downtown Jersey City, the companies reported last month. The building, called 50 Columbus, offers studio to three-bedroom apartments starting at $1,625 per month. The Costas Kondylis-designed project is near the Grove Street PATH Station and features a fitness center, tennis courts, cabanas and a rooftop deck with a pool. Panepinto Properties was also recently approved to build two 48-story mixed-use towers nearby, called 70-90 Columbus.