Feedin the Rental Appetite

via The New York Times/Antoinette Martin

The 422-unit 18 Park in Jersey City./IRONSTATE DEVELOPMENT

HUDSON COUNTY indisputably rules the rental housing market in New Jersey: It has the largest supply of Class A units — around 13,000, according to industry experts — and commands the highest average rental rates of any part of the state. This year and next, that rental kingdom is projected to grow rapidly.

Developers are already at work on, or have recently announced, projects that will add several thousand more units in waterfront communities like Hoboken, Jersey City and Weehawken, and hundreds of other units elsewhere.  READ MORE >>>

Jersey Shore Facelift

via gb&d/Interview by Suchi Rudra

Pier Village and the Bungalow Hotel, Ironstate Development’s latest high-end revitalization project, tempts travelers and residents with a boutique hotel and more than 500 luxury rentals

Beneath the luxurious design and natural materials of the Bungalow Hotel, developed by Ironstate Development and designed by Sixx Design, are numerous sustainable elements, including a high-efficiency, ductless heating-and-cooling system. Photo: Matthew Williams.

Stretching along the oceanfront in Long Branch, New Jersey, is a new luxury playground for locals and celebrities alike. Pier Village, a $400 million mixed-use community by Ironstate Development, is a massive reclamation project for the real-estate-development firm, and it features 536 luxury rental residences plus a boutique hotel, the Bungalow Hotel, which has a playful beach-chic interior and 24 guest rooms. Ironstate principal Michael Barry shared with gb&d his thoughts on the significance and the challenges of going green in the hospitality market.

 gb&d: Can you explain how Pier Village works as a massive reclamation project and as part of an urban-revitalization project?

 Michael Barry: The single most important feature in a sustainable project is site selection. This project has many of the desirable features, which include location within a half mile of rail transportation, access to bus routes and public transportation, walkable streets, amenities, existing infrastructure, an existing urban setting, and a need for revitalization.

 gb&d: How does this development combat unnecessary sprawl?

 MB: Density and location. This project takes advantage of an existing developed piece of property with low-density housing and introduces vertical construction in an established neighborhood.

 gb&d: Talk about the difficulties of obtaining LEED certification for hospitality design. Why does LEED not always come into play with these types of projects?

 MB: Building LEED sometimes means you need to make changes from the norm. Getting guests comfortable with some of the operational aspects of LEED can be challenging. Asking guests to change their habits can sometimes be daunting. But we feel that the general sentiment, as in our residential product, is that green is beneficial and the way of the future.

 gb&d: Can you talk about the sustainability goals behind the Pier Village development?

 MB: As an owner and operator of apartments, not only in Long Branch but across the state of New Jersey, we recognize the need and value of creating sustainable buildings and projects. Our clientele is very sophisticated and values the benefits of living in green environments. So for us it’s very important to address these concerns to be competitive in the marketplace.

At the Bungalow Hotel in Pier Village, one of the most important strategies was energy efficiency. A number of measures were implemented for the Bungalow, which started with the HVAC system, which utilizes a ductless split system with incredibly high efficiency ratings, environmentally neutral refrigerants, high operator control, and seamless integration with the design. The hotel units also incorporate large areas of glass for daylighting, virtually eliminating the need for artificial lights during the daytime. In the Pier Village residential buildings, we are examining modifying the light fixtures in the garage and common areas and exploring the use of LED lighting and motion sensors. We are also working on a company-wide plan to reduce water-bottle usage by providing tenants with in-faucet water filtration.

READ MORE >>>

Housing Calls To Mack-Cali

By A.D. PRUITT and DAWN WOTAPKA

Mack-Cali Realty Corp., New Jersey’s largest office landlord, announced a joint venture to develop two luxury apartment towers on Jersey City’s waterfront Wednesday.

The deal, Mack-Cali’s first foray into multifamily properties in a decade, comes as the company seeks new ways to expand as demand for office space in the Garden State remains stagnant and competition for office tenants grows fierce.

Meanwhile, the apartment market has been strong, and demand for rental apartments is growing, especially from young, urban professionals priced out of the Manhattan.

Mack-Cali, a real-estate investment trust, is teaming up with the Hoboken-based Ironstate Development Co., which built and owns Hoboken’s W hotel. The Jersey City development plan calls for two luxury towers with 500 rental units; each tower will have one-bedroom and studio apartments, sizes that appeal to younger renters. The towers will utilize two city blocks of vacant parking lots adjacent to Mack-Cali’s Harborside Financial Center office complex spanning roughly 3 million square feet on the waterfront.

“This an opportunity to take advantage of land we already owned and to grow the business by putting that land to work in a sector of the real-estate market where there is very strong demand and where we expect it to be…profitable for us,” said Mitchell Hersh, chief executive of Mack-Cali in an interview. He indicated that this company could announce additional multifamily deals in the future.

Mack-Cali, which is based in Edison, N.J., and owns 278 properties, has been among the worst performing REITs this year, in part because of its heavy concentration in the office sector in New Jersey. The office-vacancy rate in northern New Jersey was 18% as of the third quarter, higher than the national average of 17.4%, according to Reis Inc.

Meanwhile, apartment landlords nationwide are seeing rental rates increase and vacancy rates decline. In the third quarter, the vacancy rate in Hudson County—which includes Jersey City—was 5.2%, flat from a year earlier and lower than the 5.6% national rate, Reis said. Hudson County’s rent after freebies came in at an average of $2,523, up from $2,466 a year earlier. The national rate is $1,004.

“What they’re doing, I think it’s very smart. At the moment, the market clearly shows more demand for residential than for office,” said Jamie LeFrak, a principal in the LeFrak Organization, a major developer in Jersey City. He noted that with so much office space under construction at the World Trade Center just across the river in lower Manhattan, residential is “the highest and best use of the property now.”

Mack-Cali and Ironstate expect to break ground on the apartment towers in the fourth quarter of 2012.  READ MORE WALL STREET JOURNAL >>>

Grand Achievement as JC Earns Place on the Map

Grand achievement as JC earns place on the map

The developers of 225 Grand, a rental building in downtown Jersey City, announced that all of the 348 luxury residences in the building have been leased 10 months after hitting the market.

The announcement was made by Ironstate Development Company, of Hoboken, and KRE Group, of Bridgewater, the two development companies who partnered on 225 Grand. The Marketing Directors, Inc. was the luxury building’s exclusive marketing and leasing agent.

“When you are able to fully lease a building with 348 residences in less than a year, you’re talking about a special building and a tremendously successful program,” said David Barry, president of Ironstate Development.

“Demand remained consistently strong as renters responded to 225 Grand’s dynamic lifestyle offerings including upscale residences, impressive amenities and a location near a variety of mass-transit options.”

The 15-story residential tower was designed by the architectural firm HLW. It has a fitness center, indoor resident-only parking, 24-hour door man, concierge and an outdoor rooftop swimming pool.

“The success of 225 Grand is also a testament to downtown Jersey City’s emergence as one of the state’s most exciting places to live,” said Jonathan Kushner, president of KRE Group. “It’s become a model urban setting at a time when the appeal of ideally positioned to de- liver that sought-after lifestyle.”

Ironstate & KRE Group Announce Lease Up of Jersey City’s “225 Grand”

225 Grand in Jersey City

348 Residences Rented In 10 Months

The developers of 225 Grand, the premium rental building in downtown Jersey City overlooking the Manhattan skyline and Statue of Liberty, announced today that all of the 348 luxury residences in the building have been leased just 10 months after hitting the market.

The announcement was made by Ironstate Development Company, of Hoboken, and KRE Group, of Bridgewater, two prominent development companies who partnered on 225 Grand. The Marketing Directors, Inc. was the luxury building’s exclusive marketing and leasing agent.

“When you are able to fully lease a building with 348 residences in less than a year, you’re talking about a special building and a tremendously successful program,” said David Barry, President of Ironstate Development. “Demand remained consistently strong as renters responded to 225 Grand’s dynamic lifestyle offerings including upscale residences, impressive amenities and a location near a variety of mass-transit options.”

The 15-story landmark residential tower was designed by the renowned architectural firm HLW. Residents enjoy a host of amenities, including a state-of-the-art fitness center, indoor resident-only parking, 24-hour door man, professional concierge and an outdoor rooftop swimming pool. The building is just steps from the Marin Blvd. Light Rail Station, and is within walking distance to PATH stations at Grove Street and Exchange Place and ferry terminals with service to Manhattan.

“The success of 225 Grand is also a testament to downtown Jersey City’s emergence as one of the state’s most exciting places to live,” said Jonathan Kushner, President of KRE Group. “It’s become a model urban setting at a time when the appeal of downtown living continues to be on the rise, and 225 Grand is ideally positioned to deliver that sought-after lifestyle.”

For more information on 225 Grand, call 201-536-0225, or visit www.225Grand.net.

Star Ledger: 225 Grand in Jersey City Completely Leased

The developers of 225 Grand, a rental building in downtown Jersey City overlooking the Manhattan skyline and the Statue of Liberty, recently announced that all of the 348 residences in the building have been leased, 10 months after hitting the market.

The announcement was made by Ironstate Development Co. of Hoboken and KRE Group of Bridgewater, two development companies who partnered on 225 Grand. The Marketing Directors Inc. was the building’s exclusive marketing and leasing agent.

See the full clip: Star Ledger – 225 Grand in Jersey City Completely Leased – 4.8.11

What’s New in Residential Development?

225 Grand

Find our what’s new in residential development and more about 225 Grand in Jersey City:
Hudson Reporter – What’s New in Residential Development? – 3.6.11

Developers Lease 82% of the Luxury Rental Residences in First Seven Months at Jersey City’s “225 Grand”

225 Grand

The developers of 225 Grand, the premium rental building in downtown Jersey City overlooking the Manhattan skyline and Statue of Liberty, announced today that an impressive 82% of the building’s 348 luxury residences have been leased in the first seven months of availability.

The new 15-story architectural landmark is being developed by Ironstate Development Company of Hoboken and KRE Group of Bridgewater, two prominent development and management companies with strong ties to the Jersey City marketplace. The building’s exclusive marketing and leasing agent is The Marketing Directors, Inc.

“The demand at 225 Grand has been steady since we first introduced the property to the public,” said Ironstate Development President David Barry. “Achieving this level of rental velocity speaks volumes about the building’s well-conceived residences, upscale amenities and a convenient location which all come together in an exceptional lifestyle experience.”

Designed by renowned architectural firm HLW, the landmark residential tower features 348 residences with net-effective monthly rents currently ranging from $1,950 for studios, from $1,845 for one- bedroom homes and from $2,845 for two-bedroom residences.

“The success of 225 Grand also reflects the current strength of the rental market and downtown Jersey City’s position as one of the state’s most dynamic live/work/play destinations,” added Jonathan Kushner, President of KRE Group. “There’s a deep pool of renters in today’s market which appreciates the flexibility and risk-free environment associated with renting, but want living spaces and amenities on par with luxury condominium buildings. 225 Grand provides just that.”

Located in the heart of downtown Jersey City, 225 Grand features well-appointed residences and spectacular views of New York City and the Statue of Liberty. Residents enjoy a host of amenities, including a state-of-the-art fitness center, indoor resident-only parking, 24-hour door man, professional concierge and an outdoor rooftop swimming pool.

The building is just steps from the Marin Blvd. Light Rail Station, and is within walking distance to PATH stations at Grove Street and Exchange Place and ferry terminals with service to Manhattan.

For more information on 225 Grand, call 201-536-0225, or visit www.225Grand.net.

About Ironstate Development
Ironstate Development Company is a privately held real estate development and management company based in Hoboken, New Jersey. The Company engages in the development of large-scale residential and hotel projects in the Northeast United States. The company currently owns and manages over 6000 residential units and currently has approximately $1 billion in the development pipeline. www.ironstate.net

About KRE Group
Headquartered in Bridgewater, NJ, KRE Group is one of the largest privately held diversified real estate companies in New Jersey. It owns and manages more than 5,000,000 square feet of office, warehouse and retail space. It also has substantial ownership in 9,700 apartments, of which 3,400 are managed out of its New Jersey office. The company is currently constructing more than 850 apartments and has several projects in the design and approval process. For more information, visit the company’s website at www.thekregroup.com.

Wall Street Journal: Harrison Tries to Score With Development

Nearly a year after the Red Bull Arena opened its doors in Harrison, N.J., the urban rebirth some had hoped for the Hudson County town has yet to gel, but signs of development are beginning to emerge.

Once a thriving manufacturing and distribution center nicknamed the “Beehive of Industry,” Harrison was home to factories for Thomas A. Edison and Radio Corp. of America, among others. But it had turned into bleak, brownfield-littered landscape along the Passaic River as most of the factory lights had gone out by the 1970s, putting the town into a tailspin.

Read more in the article from the Wall Street Journal.

New York Times: Renter Concessions Fading Out

225 Grand

Check out this New York Times article, “Renter Concessions Fading Out“ about the new trend in renting featuring our clients, Ironstate Development, Value Companies and The Marketing Directors.