Mack-Cali, Ironstate to Develop Jersey City Multi-Family Towers
- Dec 09, 2011
December 9, 2011
By Barbra Murray, Contributing Editor
The multifamily market in Jersey City, N.J., is heating up and Mack-Cali has formed a joint venture with Ironstate Development Co. to capitalize on the growing demand in the suburban New York City town. Together, the partners will erect a two-tower luxury apartment property along the waterfront.
The project has yet to be given a name, but it certainly has a location. The apartment community will sprout up on land Mack-Cali owns at the company’s mixed-use Harborside Financial Center. Featuring five premier office buildings and a slew of retail and restaurant offerings, Harborside will take a big step closer to becoming a veritable city-within-a-city with the addition of the new residential component.
“This well-positioned site represents a tremendous development opportunity to introduce quality rental residences to an established waterfront neighborhood already offering broad public transportation options, a vibrant commercial base and complementary retail,” David Barry, president of Ironstate Development, said.
The apartment market in the Garden State is thriving like a well-watered plant. Only, it’s employment, not water, that is the source of growth. This year, 21,000 jobs have been created in New Jersey, marking a 0.5 percent increase and a positive change from the 17,000 jobs that were eliminated in 2010, as noted in a fourth quarter report by Marcus & Millichap Real Estate Investment Services. It’s been a boon to the apartment market. “Fueled by an increase in white-collar employment, more than 3,300 apartments were absorbed in New Jersey so far this year, which reduced vacancy 60 basis points to 4.1 percent, the lowest level since 2008,” the report noted.
Mack-Cali and Ironstate are geared up to answer the call for more rental accommodations. The partners have tapped HLW International L.L.P. to design the apartment property, and plan to break ground on the project in the fourth quarter of 2012.