HornRock Continues Development Frenzy with 270-Unit M-F Project in New Jersey
- Aug 18, 2014
HornRock Properties is going through a growth spurt, and its most recent activity involves plans for development of a 270-unit apartment property in Harrison, N.J. Upon stabilization, the project will boast a value of $85 million.
“We find there is a lot of value in investing in today’s rental market, especially building from the ground up,” Maurice Hornblass, a principal with HornRock, told Commercial Property Executive. “The younger generation, they don’t necessarily agree with the classic ideal of everybody wanting to own a home. They are more satisfied with renting, particularly in urban areas where there is a lot of action. To them, and to many others, the American Dream is no longer to own a home, it is to be able to pay your bills and not have to worry about a mortgage.”
The announcement of the Harrison project follows two years of active development, during which time the real estate firm increased its portfolio of rental and for-sale assets in suburban and urban locales by 400 residences. This collection of assets includes some properties that HornRock has reinvented through renovations and others that have debuted in new communities. A strategy announced in 2012 outlined the company’s plan to acquire $125 million in real estate in the near future; over the two years since that announcement, HornRock’s deals have far exceeded its goal.
As for the success of HornRock’s apartment properties, the proof is in the numbers: “Our current occupancy level across our rental portfolio is about 97 percent,” Hornblass noted.
HornRock has every intention of continuing its acquisition and development binge—because it can. “We have the funds and necessary resources to compete in the bidding process for new properties and develop both large- and small-scale projects,” Hornblass noted in a press release. “Our experience and results appeal to outside investors and private-equity real estate funds that are looking for investments that will yield them superior returns on their money. And a strong market knowledge and proven ability to solve challenging local building regulations or approval standards appeal to existing property owners looking for partnerships.”