S3 Capital Lends $49M to RedHoek+ for Allenhurst Townhome and Affordable Housing Development

Key Points

• S3 Capital originated a $49 million construction loan for a residential development in Allenhurst, New Jersey.
• The project, led by RedHoek+ CEO Lee Cohen, will deliver 28 luxury townhomes and 23 affordable apartments.
• The development represents the first phase of a larger multi-phase condominium community planned for the site.

Construction loan backs New Jersey Shore housing project

S3 Capital has provided a $49 million construction loan to RedHoek+ to finance a new residential development in Allenhurst, New Jersey, one of the most supply-constrained markets along the Jersey Shore. The project will deliver 28 luxury townhomes alongside a 23-unit fully affordable apartment building, marking the first two phases of a broader multi-phase residential community planned for the site. Allenhurst is known as an exclusive coastal enclave in Monmouth County, where limited developable land and strict zoning rules have historically restricted new housing supply.

What the development will include

The development is designed to target both high-end buyers and affordable housing demand within the borough. The townhouse portion will feature 28 four-bedroom residences with attached garages, modern floorplans, and high-end finishes tailored to the expectations of coastal homebuyers. Alongside the townhomes, the project will include a 23-unit fully affordable rental building, adding workforce housing to the community and diversifying the borough’s housing mix. Future phases of the broader development are expected to include a condominium building with more than 30 units, further expanding the project’s residential footprint.

What the financing says about the Allenhurst market

The financing reflects lender confidence in high-barrier coastal housing markets where supply remains limited. According to Shawn Safdie, Head of Origination at S3 Capital, Allenhurst’s tight-knit community and localized buyer demand make deep market knowledge essential for underwriting projects successfully. Steven Jemal, Managing Director of Origination at the firm, noted that developments in supply-constrained markets often perform well when they are carefully scaled to local demand and executed with precision. These dynamics have made coastal New Jersey markets increasingly attractive for construction lenders targeting resilient residential demand.

What the partnership means for the project

The development is being led by RedHoek+, a real estate firm founded by CEO Lee Cohen, who has previously completed seven projects financed by S3 Capital. The longstanding relationship between the lender and developer played a key role in the financing. S3’s familiarity with RedHoek+’s execution track record helped support confidence in the project’s business plan. Cohen said the development is intended to deliver high-quality housing that reflects the exclusivity of the Allenhurst market, while continuing the firm’s strategy of building residential communities across New York, New Jersey, and South Florida.

What the deal means for S3 Capital’s lending strategy

The Allenhurst loan highlights S3 Capital’s continued expansion in New Jersey, particularly in residential construction lending. Since launching its credit platform in 2013, the firm has originated more than 850 loans totaling over $8.5 billion, primarily targeting multifamily development in major U.S. markets. By focusing on markets with strong demand and limited new supply, S3 aims to generate stable returns while supporting housing development in high-barrier locations like Allenhurst.