Fencing and permits have gone up at 165 Newark Avenue for a 51-unit development that will partially preserve the existing building. Photo by Chris Fry/Jersey Digs.
An endeavor that will partially reuse a historic building while creating an addition has gained a big cash infusion after work finally began on the long-delayed development last year.
Brokers with CBRE announced they have secured a $35.4 million loan package on behalf of Hopkins Group Management, the developers behind 165 Newark Avenue in Jersey City. The company’s advisory team said the capital sources include a senior construction loan provided by Goodman Capital and mezzanine debt from SteepRock Capital.
The package allows Hopkins Group Management to move ahead with the development, which finally broke ground in 2025. The project will create 51 total new units of housing as well as 13,904 square feet of retail space alongside the Newark Avenue Pedestrian Plaza.
The redevelopment as seen from Newark Avenue. Rendering courtesy LWDMR Architects.
CBRE’s Matthew Pizzolato and Josh Stein arranged the financing and noted that future residents of the seven-story building will be just about a block away from the Grove Street PATH Station.
“Well-located, transit-oriented multifamily developments like 165 Newark Avenue continue to attract strong interest from the debt capital markets,” Pizzolato said in a statement. “By structuring a thoughtfully layered capital stack, we were able to deliver a financing solution that allows our client to advance the project with minimal need for additional outside equity.”
Rendering of the future at 165 Newark Avenue. Credit LWDMR.
Known locally in recent years as the Barcade building for the bar that had inhabited the ground floor, the redevelopment plan for the property was greenlit way back in 2019. Designed by LWDMR Architects, the plan calls for constructing a new development in two phases while retaining the edifice of the historic building along Newark Avenue and the northern part of Barrow Street.
Approved redevelopment of 163-165 Newark Avenue, Downtown Jersey City. Rendering courtesy LWDMR Architects.
The development’s first phase will consist of a seven-story building with a penthouse and “ground floor commercial mezzanine,” while the second phase involves the construction of a five-story building.
A timeline for the completion of both phases has not been announced, as this stretch of Newark Avenue has become a bit of a construction zone as of late. A pair of mid-rise developments that also include ground-floor retail space are underway at 155 Newark Street and 157 Newark Avenue just down the street.