A 34-story tower has started work at what was a surface parking lot at 693-701 Newark Avenue in Jersey City. Image via Apple Maps.
A development in Jersey City’s Journal Square neighborhood that includes a significant affordable housing component has secured financing after years of planning, as early construction has already begun at a large lot on Newark Avenue.
JLL Capital Markets announced that it has advised on a roughly $200 million structured capitalization and forward Freddie Mac commitment for Lions Group’s Homestead Gateway development, a 34-story mixed-income residential tower. Located at 701 Newark Avenue, the 360-unit development will transform a former municipal parking lot into a modern residential community with 90 affordable housing units.
The streetscape of Homestead Gateway will serve as the entrance to the emerging pedestrian plaza. Image courtesy JLL.
The Urban Investment Group at Goldman Sachs Alternatives provided a bespoke, multi-tranched capital solution to the project, including a construction loan, bridge facility, LIHTC equity, and Aspire tax credit purchase. The financing package also includes a forward Freddie Mac commitment arranged by JLL Real Estate Capital, LLC.
Homestead Gateway was previously granted a 30-year tax abatement by Jersey City earlier this year. The project also secured a $90 million tax credit from the New Jersey Economic Development Authority (NJEDA) back in October.
“It is extremely rare to see a new development bring so much to the table in terms of affordable housing, union jobs, and community benefits,” said Aaron Shirian, Principal at Lions Group. “The City of Jersey City has proven itself to be a national leader in strategic housing development, not only by attracting investment in the multitude of projects we have seen over the last decade, but also by ensuring that those investments go toward thoughtfully planned projects that will provide benefits to the entire community.”
The tower is slated to rise at 701 Newark Avenue. Image courtesy JLL.
Besides the notable affordable housing generated by the project, the development will allocate one-third of its site to publicly accessible open space via the expansion of the Homestead Place Pedestrian Plaza.
The building will feature nearly 3,000 square feet of ground-floor retail along the stretch, as well as amenities such as a rooftop lounge, fitness center, bicycle storage, and shared workspaces.
The project represents a significant workforce development initiative, as it is slated to utilize 100% union labor under a Project Labor Agreement with Hudson County Building Trades. The development has also committed to permanent union operations through an agreement with 32BJ SEIU.
“Mixed-income developments like Homestead Gateway demonstrate how thoughtful housing solutions bring together families across income levels to create stronger, more prosperous communities,” added Asahi Pompey, Chair of the Urban Investment Group at Goldman Sachs Alternatives. “This innovative approach doesn’t just help address the affordable housing crisis; it drives economic growth, brings neighborhoods together, and delivers tangible benefits for families in Jersey City.”
Early construction has already begun at the site, with a groundbreaking ceremony slated to be held sometime before the end of the year.