HAP Investments to Buy 1 MSF Development Site in Jersey City for $400M
- Apr 02, 2014
By Keith Loria, Contributing Editor
HAP Investments L.L.C. is in contract to acquire 500 Summit Ave., a nearly one-acre lot in Jersey City for a reported $28 million.
The company plans to develop the prime Journal Square location into HAP Tower. It comprises a 42-story apartment building, offices and retail. The anticipated cost of the 1 million-square-foot development is estimated to be $400 million.
Currently a parking lot, the site is located at the summit of Jersey City and affords views of Manhattan and the metropolitan region.
“There are many developments in this area but we want to build a project that will surpass our competition in design and luxury,” Eran Polack, HAP Investments’ CEO, told Commercial Property Executive. “This transaction fits with the company’s philosophy of investing in developing areas that are locations of great growth in the future.”
HAP Investments is committed to sound environmental development, and will create an open urban green space environment for the project.
The site is in close proximity to some of the region’s convenient transportation links, including: PATH, Amtrak and bus routes to numerous regional destinations. Future retail shoppers, residents and office workers will also able to access Journal Square through the adjacent local and regional road system.
According to Polack, the company was attracted to the development because of its distance from the city, the potential views of the project, the price and the tax abatement structure.
“The prices in Manhattan are extremely high right now and Journal Square’s prices are attractive to us,” Polack said. “Furthermore, the government of the city is pro-development right now. We also see a lot of projects going up in the area which will make this project very attractive and have a lot of potential buyers.”
This is HAP’s first venture in New Jersey. The company has been very active in Upper Manhattan and the East Harlem areas with properties including: 419 E. 117th St., 247-249 E. 117th St., 2338 2nd Ave., 329 Pleasant Ave., and 1655 Madison Ave. In addition, the company purchased a major development site at 215-219 W. 28th St., in New York City’s Chelsea neighborhood.