Tuesday, April 11, 2006

Hovnanian Plans Jersey City Hi-Rise

From the Jersey Journal:

Hovnanian, partner buying Hartz land, plan to build two residential towers

K. Hovnanian and Equity Residential will pay more than $65 million to buy land on the Jersey City waterfront for two residential towers, two officials with knowledge of the deal said yesterday.

The deal to buy the land at 77 Hudson St. from Secaucus-based Hartz Mountain Industries and build two 48-story buildings is the latest in a series of major residential projects for the Jersey City waterfront.

It marks a major shift for Hovnanian, which has built thousands of houses and smaller, multifamily developments but never a major tower like the ones planned for Jersey City.
"It represents how K. Hovnanian remains young by taking on new markets," said Doug Fenichel, a company spokesman. "This is the largest thing we've done in the Northeast."
Planning documents show the towers proposed by Hovnanian and Equity would total 925,000 square feet and have 901 units.

An East Tower would have 420 condominiums, including studios and one-, two-and three-bedroom apartments. A West Tower would have 481 rental apartments, including studios and one-and two-bedroom apartments.

There will also be a parking garage with 896 spaces and about 20,000 square feet of retail space.

This seems like a major transition for Hovnanian. They are likely following the lead of Toll Brothers whose developments on the Gold Coast were successful. However, this development project has an interesting twist, it's more than 50% rental. With 481 rental units available in the West Tower, the condos in the East Tower may have less appeal to investors or speculators.

Caveat Emptor!


Anonymous Anonymous said...

Hovnanian is also know for using poor quality products and poor workmanship. If these towers are anything like the Society Hill they built in Jersey City, they will be difficult to sell. Poor construction, poor quality doors, sheetrock and fixtures made that place a tough sell for years.

4/11/2006 07:15:00 AM  
Blogger Richard said...

the wet behind the ears, never seen a recession youngers today don't care about things like workmanship. they'll buy anything.

4/11/2006 07:21:00 AM  
Blogger Richie said...

901 units, 896 parking spaces.

No wonder there are parking issues in these overly-built-up areas.

How many NJ families do you know with only ONE car?

4/11/2006 07:40:00 AM  
Blogger grim said...

I don't think I'd be able to afford another car living in a place like that. Parking fees alone wouldn't make it worthwhile.

But that poses an interesting discussion. These one-car households are dependent on NYC jobs and mass transit. Most of suburbia requires two incomes, two jobs, and two cars to commute to them.

What happens to these areas if NYC jobs or the NYC/JC financial industry declines? Can these households afford to commute to jobs that are not accessible to mass transit? Can they afford the costs associated with a dual car household as well as the high housing costs?


4/11/2006 08:56:00 AM  
Blogger Grim Ghost said...

How many NJ families do you know with only ONE car?

Raises Hand.

In large parts of Hudson and even a few Bergen County towns, 2 cars aren't necessary for a couple without kids. In fact, finding parking for more than one car is a pain.

Hovanian has a number of planned developments in North Bergen and Edgewater along the so-called gold coast. They're asking very high prices for Riverview II, and not getting much traffic.

4/11/2006 09:08:00 AM  
Anonymous UnRealtor said...

"How many NJ families do you know with only ONE car?"

If you live near NJ Transit into NY City, a second car is not needed.

Saves on not having the expense of purchase, ongoing maintenence, fuel, and insurance.

4/11/2006 09:24:00 AM  
Anonymous Anonymous said...

A lot of renters in Newport don't need even one car. I know a lot of people who don't have a car, don't want a car and can't afford a car (parking + insurance) in that area.

4/11/2006 01:05:00 PM  
Blogger 42 said...

nobody at this place would really need a car since the property is right on the light rail between the Essex St and Exchange Place stops; the LR goes to the stores at Harsimus Cove and Pavonia.

of course many residents will have cars, but they won't be a necessity. I live in Bayonne and hardly use my car.

4/13/2006 08:04:00 PM  
Anonymous Anonymous said...

Plus, you can take a NJ tranist Bus from Journal Square to pretty much everywhere in Northern NJ.

4/14/2006 12:34:00 PM  
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