Related Acquires 1.3-Acre Multifamily Dev Site in Jersey City for $58M

In a significant move within the real estate landscape, Related has acquired a 1.3-acre multifamily development site in Jersey City known as Harborside 4 from Veris Residential for a total of $58 million. This acquisition, announced on Monday by Cushman & Wakefield and CBRE, highlights the continued growth and transformation of Jersey City's real estate market.

The Transaction Details

Cushman & Wakefield's team, including Andy Merin, David Bernhaut, Gary Gabriel, Frank DiTommaso, and Ryan Dowd, in collaboration with CBRE's Jeff Dunne, Bill Shanahan, and Roland Merchant, played key roles in orchestrating this transaction on behalf of Veris Residential. The success of this deal is attributed to the dedication of both Veris and Related, who overcame previous site limitations and restrictions, showcasing their commitment to the project's success.

A Vision for the Future

The proposed project for Harborside 4 is set to redefine Jersey City's Exchange Place community, creating a vibrant and high-end rental district. It will offer future residents top-quality, luxury living spaces in this burgeoning neighborhood.

Harborside 4's Location and Potential

Situated at 20 Christopher Columbus St., Harborside 4 represents a prime piece of real estate. This 1.34-acre land site is earmarked for the development of a luxury rental tower that will feature approximately 800 residential units. Importantly, this project marks Related's first foray into high-rise rental development in New Jersey. Furthermore, the location's accessibility is a significant advantage, with proximity to various mass transit services, including the Path, New Jersey Transit-Hudson-Bergen Line Light Rail, NY Waterway Ferry, and NJ Transit Bus & Rail Stations. Additionally, it's less than a mile from the Holland Tunnel and offers a quick five-minute commute to New York City, making it an attractive prospect for potential residents.

Market Resilience

The acquisition of Harborside 4 underscores the resilience of the Jersey City rental market. Despite a notable increase in the supply of apartment units, with over 7,400 units delivered over the past five years, occupancies in Jersey City remain impressively high, reaching 96%. The residential growth is further supported by the influx of new retailers, such as Whole Foods, Ashley Home Furniture, Uniqlo, and Target, which are expanding their presence in Jersey City, signifying the area's growing appeal.

A Track Record of Success

This transaction represents yet another milestone in the ongoing collaboration between Cushman & Wakefield and CBRE for the Harborside Portfolio. To date, the teams have successfully arranged sales totaling $524 million, including the $420 million sale of Harborside 1, 2, and 3 in the first quarter, as well as the $46 million sale of Harborside 6 in the third quarter. The remaining property in the Harborside Portfolio, Harborside 5, is now slated for disposition, with Cushman & Wakefield and CBRE working toward orchestrating its sale. The successful completion of this sale will mark the culmination of the Harborside disposition assignment.

In summary, Related's acquisition of Harborside 4 in Jersey City not only represents a significant real estate investment but also symbolizes the ongoing growth and transformation of this vibrant community, promising luxury living options and convenience for future residents.