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 >>>

via The Real Deal 

The group of developers building an 82-unit condominium building at 211 East 13th Street has hired Jacqueline Urgo, president of the Marketing Directors, to promote the property, which is slated for groundbreaking this summer.

The project, which will occupy a vacant site between Second and Third avenues, is being developed by Ironstate Development, Charles Blaichman, and Abram Shnay and his son, Scott Shnay. They are anticipating completing the project by late 2013.

The consortium bought three adjacent lots on the block for $33.2 million in October from Builtgross Associates, a subsidiary of Milstein Properties, and took out a nearly $20.8 million mortgage, according to city property records. Builtgross had owned the sites at 208 East 14th Street, 214 East 14th Street and 216 East 14th Street since 1986.

The project will feature a mix of studios and one-, two- and three-bedroom apartments, plus 4,500 square feet of ground-floor retail space on East 14th Street. Amenities include a gym, lounge and roof deck with an outdoor kitchen. Buyers will have a chance to purchase private storage and roof terraces.

Though Blaichman and Abram Shnay are no strangers to the downtown Manhattan development scene, this is the first New York City project for Ironstate, one of New Jersey’s largest developers. The Hoboken, N.J.-based company is also partnering with Andre Balazs to transform the Cooper Square Hotel at 25 Cooper Square into the Standard East Village.

Previously, Ironstate has worked with the Marketing Directors on Garden State properties, among them Jersey City’s 225 Grand and the condos above the W Hoboken hotel.

Blaichman, owner of Chrystie Street-based CM Developers, has frequently collaborated with the Shnays before, including on rapper Jay-Z’s failed bid to develop a Chelsea hotel. Blaichman and the Shnays also jointly built the Urban Glass House, a condo building designed by Philip Johnson at 330 Spring Street, and the Theory Building at 40 Gansevoort Street. — Leigh Kamping-Carder

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 >>>

Demolition is underway at the Home Port site on Stapleton's waterfront. Ironstate Development Company expects it to be completed by mid-February.

STATEN ISLAND — STAPLETON — The long-awaited transformation of the Stapleton waterfront is under way at the 35-acre Home Port, the decommissioned U.S. Naval base.

Ironstate Development Company, the Hoboken-based private developer, is taking the lead with a $150 million project on seven acres of the site. The first phase will see the construction of about 450 rental apartments and 25,000 square feet of street-level retail space.

Ironstate expects demolition to be completed, and the site cleared, by mid-February. Construction is planned to start in late summer, and the first housing units ready for leasing and occupancy in Fall 2013.

The second phase of the project calls for another 450 apartments and an additional 5,000 square feet of retail space.

The city will spend $33 million for major road reconstruction and improvements, and the creation of a waterfront esplanade. The open space will include walking paths, lawns and landscaped areas, and a new public launch site for non-motorized boats, plus docking for historic vessels, according to the city’s Economic Development Corporation.

ABOUT IRONSTATE

Ironstate Development Company specializes in the development of residential and commercial real estate, and currently owns and manages over 6,000 housing units. Its projects include:

• The Shipyard, Hoboken, N.J.: 1,160 residences, 65,000 square feet of retail shops, a one-acre park, ferry stop and marina on the Hudson river-front.
• Port Liberte, Jersey City, N.J.: A 1,650-unit waterfront condominium facing the Statue of Liberty.
• Pier Village, Long Branch, N.J.: A “Victorian-inspired village,” with 543 luxury rental units, a boutique hotel, and 100,000-plus square feet of entertainment and retail shops, including a beach club, gourmet restaurants and boutiques on the oceanfront.
• The W Hoboken Hotel & Residences, Hoboken, N.J.: A 25-story hotel with 225 guest rooms and 40 condominium residences on the waterfront.

Jeff Rossi, 25, says he chooses to rent because it suits his lifestyle and he can take advantage of financial incentives. He rents this apartment at Harrison Station.

Jeff Rossi is only 25, but when he was leaving his parents’ home recently, he contemplated buying.

“My mother is a Realtor and she fought me on renting,” he said. “She told me to get an investment. I’m very hands-on, but I don’t have time and patience to do it now.”

Rossi is a renter at Harrison Station, a 275-unit building in Harrison.

He loves the pool, amenities room, business center and retail offerings. Although those choices are available in the condo market, Rossi said he likes the flexibility of rentals.

“The other great thing is that with a lot of new buildings, there are incentives to move in, you get two free months here, two free months there,” he said. “I’m a single guy, I can move around a lot. You can get a great deal.”

Rossi is one of legions of renters in North Jersey who are in no hurry to buy. Some are waiting for economic stability or for the market to settle. Many also just enjoy the renter’s lifestyle.

The rise of the renter can be seen in how home-ownership rates have dropped in recent years. In 2005 and 2006 in New Jersey, between 69 and 70 percent of people owned their own home, according to census data. In the third quarter of 2011, that number dipped to 65 percent.

Marnie Raimondo is well aware that this is an excellent time to buy a home.

She knows interest rates and prices are at record lows, and her sister — her younger sister, she points out with a laugh — has been looking at homes for months.

“She’s always telling me, ‘You should really be out there looking,’ ” said Raimondo, who has a one-bedroom apartment at 140 Mayhill, a luxury rental building in Saddle Brook.

“I do make a good living and, technically speaking, I could afford it, but I don’t feel like I have enough to put down on a house and still have money in my back pocket in the event that something happens.”

“I like renting,” Raimondo said. “It’s easy, it’s convenient. I don’t have any maintenance to worry about. They take care of everything for me. There’s a parking garage, and when it snows my car is covered. There’s no shoveling.”

Raimondo said her rent is similar to a mortgage, but she knows there are hidden costs associated with homeownership.

“If anything goes wrong, you have to foot the bill, you can’t just call the super,” she said.

Another sign of renting’s popularity is how vacancy rates are low — about 3.7 percent in Bergen County for the third quarter of 2011, according to the real estate investment-services firm Marcus & Millichap.

Those numbers are a far cry from the U.S. average, which was 9.8 percent in third quarter of 2011, but lower than the first quarter of 2010 when Bergen County’s vacancy rate hit 5.7 percent.

The recent low vacancy rates are similar to what they were in 2005 when the economy was stronger, said Michael Fasano, Marcus & Millichap vice president and regional manager.

‘A better lifestyle’

“The vacancy rates were low in 2005 because the stronger economy was driving companies to hire people out of college who needed to rent apartments,” Fasano said. “Today what’s driving it is that people now see apartment renting as part of a better lifestyle.”

Low vacancy rates mean that rents also are on the rise. In Bergen County, effective monthly rent in 2005 was $1,348. In 2011 it nudged up to $1,484, according to Fasano.

Another way to gauge the popularity of renting is to look at the buildings. The developer BNE Real Estate Group recently switched two projects from condo to rental to respond to marketplace demands.

The first originally was conceived as an active-adult condo development, then switched to a free-market for-sale product. Last month, they broke ground on a 194-unit rental project in Fort Lee called Twenty50 that should be done by September 2013. The second project, in Jersey City, also was originally slated to be condos; it’s now planned as a 139-unit rental development.

“In general what we’re really seeing is a lot of people are renting by choice now,” said Jonathan Schwartz, senior vice president for BNE. “It’s about greater mobility and flexibility and not having to worry about maintaining a home, and still living within 10 minutes of Manhattan.”

Sally Robertson and her husband, Oscar Burgos, would seem to be prime candidates for home ownership, thanks to their three children. But Robertson said they have no plans to move from their Hoboken duplex at The Shipyard, where they have lived for nine years.

“For us, it’s about lifestyle,” said Robertson, whose family loves the building’s pool, the proximity to New York City and the conveniences of rental living.

“We don’t spend any of our free time doing maintenance or mowing lawns or fixing things,” said Robertson, who is originally from London; her husband is from Colombia. “Any free time we have we spend enjoying where we live, not maintaining it.”

In the early years at the Shipyard, Robertson watched many of their friends buy homes in the suburbs. Recently, they’ve seen more staying, and some people who left have returned.

“I think in all honesty, if we did buy a place it would be in Europe or somewhere else, a place that we would live part of the year,” she said.

Robertson said her family can’t believe how much they spend on rent, knowing that none of it is building equity.

“If you stop at the end of the year and think about how much money you’ve paid in rent, that can be a little shocking,” she said. But she always comes back to the luxury features of the Shipyard — the waterfront park, the health club, the on-site retail shopping.

“Honestly, we could not afford to live in such a beautiful place if we bought,” she said.

Luxury rentals are a major driving force, said Jacqueline Urgo, president of The Marketing Directors, which does in-house sales and marketing for both condo and rental projects. In the three decades Urgo has been with the company, she has seen major changes.

“Let’s say that in 1995, if you had a lounge in a rental building, it was considered an unbelievable luxury,” she said. “Now you have buildings with a doorman, a spa, an upscale lounge, a state-of-the-art fitness center. You have an amenities package similar to a luxury condo.”

In those early days, rental buildings never trumpeted in-unit features such as finishes and appliances. Urgo said one of their newest projects, a 108-unit rental building in Elmwood Park built by Riverfront Residential, will have granite countertops and artistically designed tiling.

“The materials will be incredible,” she said.

Urgo said she’s seeing luxury rentals go quickly. At Harrison Station, about 50 percent of the homes have been rented after only three months on the market. Urgo compares that to a project she recalled in the 1990s that took 16 months to rent out.

Real estate agents say their rental clients are rising. Scott Selleck, broker sales associate for Re/Max Villa Realtors in Edgewater, said his rental clientele has increased by 50 percent in the past six months.

“There is a mindset that people would rather rent and keep their payments reasonable, and not get caught with the market dipping again,” Selleck said.

A worn American flag still hangs at the Staten Island Homeport, and that’s about the only thing that’s left of the sprawling 36-acre waterfront property once owned by the U.S. Navy.

The long-abandoned site now looks like a junkyard. Construction crews have been working since last month to demolish the old buildings that once stood there to make way for the new ones to come.

Things are underway here. We’re really excited about it,” says David Barry of Ironstate Development.

It’s all part of an aggressive plan to turn the space into a Staten Island destination. Under a partnership between the city’s Economic Development Corporation and Ironstate Development, 900 units of housing will be built in phases and aimed at attracting young professionals.

Ideally featuring mom and pop shops and established Staten Island businesses, the space will allow for 35,000 square feet of retail space.

It will also include waterfront access, infrastructure improvements and an esplanade to be paid for by the city.

“We’ve been working really hard on this, working seven days a week, about 18 hours a day. They start at seven in the morning, they finish up late at night, so it’s not 24/7, but it’s close to that, and you know we’re really pushing hard to get this thing done,” says Barry.

The project has been met with much criticism. Many doubt the city’s ability to build up the home port space because the site has a long history of stops and starts, but the developer says the demolition equipment is proof enough that the city will make good on its word.

“We’re two stops from the Staten Island Ferry, it’s direct access into Manhattan, it’s just, it’s got beautiful views, great access, it’s gonna have a great neighborhood,” says Barry.

Once demolition is complete, it will take about three weeks to fully remove all of the debris from the site. Then the developer will spend a couple of months refining the site’s plans.

Construction is expected to begin sometime this summer.

CLICK HERE TO WATCH VIDEO

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 >>>

By Travis Fedschun/The Jersey Journal

A ribbon-cutting ceremony on Friday, Dec. 9, 2011, marked the completion of the first phase of the Harrison Station mixed-use development at 300 Somerset St. Here, David Barry and Michael Barry of Ironstate Development together with U.S. Sen. Robert Menendez, center, Mayor Raymond McDonough, third from left, and Hudson County Executive Thomas DeGise, fourth from right, and other local officials, cut the ribbon. Reena Rose Sibayan/The Jersey Journal

The first building in the $750 million Harrison Station mixed-use development opened yesterday afternoon with ceremonies attended by Sen. Robert Menendez and local officials.

The new development includes a beach volleyball court, landscaped courtyard with a pool, and a state-of-the-art fitness center just steps from the Harrison PATH station.

“This project serves as a model for New Jersey,” said Menendez. “Projects like this use existing infrastructure we already have to concentrate and create opportunities for others.”

The building, at 300 Somerset St., includes 275 luxury apartments in a four-story structure with 12,814 square feet of street-level retail space. More than 130 apartments have been leased and a combined total of 5,500 square feet of retail space has been leased to Five Guys Burgers & Fries and Pronto Gourmet, both opening in January.

Sen. Menendez praised the project as being a “perfect example” of how to create smart-growth development around transit stations, something the senator said he has been a proponent of on the national level.

The developers of the project, Ironstate Development Company and the Pegasus Group, also announced the next phase of the Harrison Station mixed-use development. A new 136-room LEED-certified Element by Starwood hotel will begin construction in early 2012.

Rents in the Harrison Station building range from around $1,600 for a one-bedroom to the $2,100’s for a two-bedroom. Every unit in the building also features a handicapped-accessible bathroom to comply with the Americans with Disabilities Act.

“Newport and Exchange Place are becoming far too expensive. This is right by the PATH and allows you more access with your money,” said Sentil Kumarakesavan, who telecommutes to his job in Philadelphia but wanted Amtrak access for when he has to go to his office.

Once complete, Harrison Station will feature 2,600 residences, 80,000 square feet of retail space and a hotel with a retail concourse. The entire 27-acre redevelopment project will create 2,000 construction jobs and 400 permanent commercial jobs, officials said. MORE PHOTOS >>>

By DEBRA HAZEL

Ironstate Development and US Senator Robert Menendezcut the ribbon on the 275-unit building

HARRISON, NJ-The first phase of the Harrison Station mixed-use development here was officially completed on Dec. 9, when US Sen. Robert Menendez (D-NJ), Hudson County Executive Thomas A. DeGise and Harrison Mayor Raymond J. McDonough joined developers Ironstate Development and the Pegasus Group for a ribbon-cutting ceremony.

The group inaugurated a 275-unit luxury rental building that also includes 12,814 square feet of street-level retail space. In time, the Ironstate/Pegasus development will consist of 2,600 residences, 80,000 square feet of retail space and a 136-room, LEED-certified Element hotel with a retail concourse. Construction will begin in early 2012 on the hotel.

“This project is an investment in Harrison’s future that creates hundreds of jobs and paves the way for thousands more,” Menendez said, according to a statement. “It’s a great example of smart growth and how good planning around public transportation can lead directly to economic development. This partnership is a model of how government, business and local communities can work together to usher in a new economic era for Harrison.”

More than 130 residences have already been leased, according to The Marketing Directors, Inc., the community’s exclusive marketing and leasing agent, while 5,500 square feet of retail has been leased to Five Guys Burgers & Fries and Pronto Gourmet.

The project is adjacent to the Harrison, NJ PATH Station, and across the street from the Heller Urban Renewal redevelopment of industrial space, a different project from the Ironstate/Pegasus development.

The new development will create approximately 2,000 construction jobs and 400 permanent commercial jobs, Ironstate says. “It’s been a long and exciting journey to get here, but our company has always believed in this town,” says David Barry, president of Ironstate Development. “The PATH, the wonderful neighborhood and the proximity to highways are just some of the core elements that made this an attractive development opportunity. It’s been a tremendous effort with cooperation from the town, the state and many other entities, and it is gratifying to see it come to fruition.”

via The Newark Star-Ledger

By Kathleen Lynn/The Record

Two luxury apartment projects are planned for the Hudson River waterfront, a sign that rentals remain the most robust segment of the real estate market.

Mack-Cali Realty, the state’s largest office landlord, said yesterday it is teaming up with Ironstate Development of Hoboken to build two highrise towers of 500 units each in Jersey City. READ MORE >>>>