Along the Rails

® REAL ESTATE & CONSTRUCTION REPORT Along the Rails

DEVELOPERS FLOCK TO TRANSIT STATIONS Ambitious projects mix residential & commercial Their targets: commuters, empty-nesters, millennials REAL ESTATE & CONSTRUCTION REPORT

® Table of contents 220 DAVIDSON AVE., SUITE 302 SOMERSET, NJ 08873 PHONE (732) 246-7677 Letter to readers...... 3 FAX (732) 846-0421

PUBLISHER Ken Kiczales [email protected] Whistle stops: GENERAL MANAGER AnnMarie Karczmit [email protected] The Link at Aberdeen...... 4 ADVERTISING SENIOR ACCOUNT EXECUTIVE The Grande at Metropark...... 7 Penelope Spencer [email protected] ACCOUNT EXECUTIVES Susan Alexander [email protected] The Hub@New Brunswick...... 8 Kirsten Rasky [email protected]

Damon Riccio [email protected] Ridin’ the rails with Russo Development...... 10 John Bodnar [email protected] Tim Drasher [email protected] Baldwin Place in Jersey City...... 11

EDITORIAL

EDITOR JMF Properties visits Plainfield, Denfield and Montclair...... 12 Howard Burns [email protected] MANAGING EDITOR Carl DiOrio [email protected] WEB EDITOR/SOCIAL MEDIA COORDINATOR Jessica Perry [email protected] STAFF WRITERS Vince Calio [email protected] Health Care/Banking & Finance

Gabrielle Saulsbery [email protected] Law/Food & Hospitality/Small Business

David Hutter [email protected] Education/Transportation/Manufacturing

Elana Knopp [email protected] Real Estate

Daniel J. Munoz [email protected] Government/Economic Development

CHIEF PHOTOGRAPHER Aaron Houston [email protected] RESEARCHER Bethany Wiegand [email protected] EVENTS EVENTS DIRECTOR Wendy Berg [email protected] EVENTS COORDINATOR Anna Acquaviva [email protected]

SUBSCRIPTIONS (866) 288-7699 REPRINTS For licensing, reprints, e-prints and plaques, email Lisa Arnold at [email protected] or call her direct line at 717-323-5213. Authorization to photocopy articles for internal corporate or instructional use may be obtained from the Copyright For photos, please see njbiz.com/photos

RE2 Summer 2018 NJBIZ www.njbiz.com REAL ESTATE & CONSTRUCTION REPORT

LETTER TO READERS Developers love to ride the rails

Instead of a satchel of clothes lazily slung over a shoulder, these ir- repressible wayfarers travel the state’s transit corridors bearing project blueprints and building codebooks in search of the next prime parcel for mixed-use projects big and small. In this issue of our Real Estate & Construction Report supplement, we detail several projects strategically placed near NJ Transit and Am- trak stations in towns such as Aberdeen, New Brunswick, Jersey City and elsewhere. Developers are attracted to sites near transit stops because the commuters, shoppers and others passing through the turnstiles repre- sent potential tenants and customers for the homes, shops and offices they build in projects clustered nearby. So hop aboard our latest Report for an illuminating tour of the personalities and projects to be found Along the Rails of New Jersey. No ticket required.

Carl DiOrio Managing Editor NJBIZ

www.njbiz.com NJBIZ Summer 2018 RE3 REAL ESTATE & CONSTRUCTION REPORT

The Link at Aberdeen Station sits just a few steps from a commuter rail line in the heart of a growing Monmouth County community.

From left, Jonathan Schwartz, principal, BNE Real Estate Group, and Aberdeen Mayor Fred Tagliarini in front of The Link at at Aberdeen Station. The Link at Aberdeen Station. - Photos by Aaron Houston

Central Jersey transit stop Active Aberdeen: sees development aplenty

BY MARTIN DAKS

he story behind The Link at Aberdeen Station — a five-building, upscale mixed-use development of 225 units nestled up against New Jersey Transit’s Aberdeen-Matawan station — Ttells a lot about the direction of residential development in the Garden State. It’s a gated community full of amenities, including stainless steel appliances in each unit, a commercial-grade fitness center, a conference room and other goodies. But as any Realtor will tell you, location is the No. 1 issue when it comes to residence appeal. And in this case, the development’s proximity to a train station — just steps away — clinches the deal. “During the last five or six years we’ve been doing a lot more transit-oriented projects,” said Jonathan Schwartz, a partner at developer BNE Real Estate Group. “A lot of the demand is being driven by 25- to 35-year-old singles and couples – though there’s also interest from empty-nesters, too — who work in Manhattan or Newark but don’t want to pay Manhattan, Newark or Jersey City

RE4 Summer 2018 NJBIZ www.njbiz.com REAL ESTATE & CONSTRUCTION REPORT rents. Living next to the station here [on mean more work for a builder, however, ment of soundproofing. These and other projects often have the North Coast Line] lets them roll out since a location that’s right up against a Another concern is getting approved unique design and other characteristics, of bed, jump onto the train and enjoy a train station can make sound an issue. for a PILOT, or payment in lieu of taxes, like offering upscale amenities that ap- quick commute. It’s a value proposition Schwartz said special materials can han- program. Otherwise, the cost of acquiring, peal to their target markets, but in addi- that gives residents similar amenities and dle that, including “windows with a high remediating and developing land near a tion to being near mass transit they gen- convenience, but for less rent.” STC rating,” referring to Sound Transmis- station might be too high. erally share another trait: a location in the Convenience for tenants can also sion Class, an industry-standard measure- The first phase of The Link at Aber- northern or central part of the state. That deen Station opened up in March and was doesn’t surprise Michael McGuinness, 75% leased by May, said Schwartz, who’s CEO of real estate development associa- Municipal cooperation always helps been with BNE for more than a decade. tion NAIOP New Jersey, which advocates The willingness of many people to work Developers are attracted by the demand for His other developments have included on behalf of the mixed-use, commercial, together was a big reason why The Link at these kinds of projects, according to Tagliarini. Warren at York, an 11-story building he industrial and other real estate sectors. Aberdeen Station worked out, according to “Aberdeen in particular was desirable because put up in Jersey City’s Paulus Hook neigh- “Based on the population density, Aberdeen Mayor Fred Tagliarini. the station here is one of the most heavily borhood in 2014 that boasts a short walk there are simply more people in north- “The initial plans for this site go back more traveled on the North Coast Line,” he said. to PATH, the NY Waterway ferry and a See ABERDEEN on page 6 than a decade, since the town wanted to do “For the new residents, a development like The light rail station. Less than a month after something about what was, essentially, an Links offers convenience – roll out of bed in its opening, more than 90 percent of the almost 20-acre eyesore filled with old ware- the morning, take a leisurely stroll to the train 139 apartments were leased out, he said. houses and other unused space,” Tagliarini said. station and you’re on your way. Then in the eve- Current BNE projects include River “I inherited the project from my predecessor, ning, you don’t face a lengthy second commute Park and Waters Edge, both in Harrison. Mayor David Sobel; and we worked closely with to your home.” “They’re all part of a redevelopment the state, NJ Transit, then-State Sen Joe Kyril- Besides The Link, other developers are putting area, and are PATH centric,” Schwartz said. los, then-Governor Christie and others. A lot of up new multifamily housing in Aberdeen, drawn “Unlike The Link at Aberdeen — which people got involved and it got done.” by the town’s central location off the Garden has 7,000 square feet of retail, including Tagliarini also credits the town’s Economic State Parkway and its easy access to rail. The Brooklyn Bagel and Frutta Bowls —these Business Council. target market for these transit-oriented devel- Harrison developments don’t have a retail opments tends to be singles, young couples and “We worked closely with the business council, component. The Harrison real estate mar- too, since new residents means more potential empty nesters. ket s focused on PATH accessibility, and customers for local companies, in addition “We considered the issue of density, but we be- there’s a lot of retail nearby.” to boosting the town’s ratables,” he said. lieve there’ll be a limited impact on our schools “Developments like these are also good for and other services,” Tagliarini said, adding that BNE also previously developed The the environment, since people moving into most of the apartments in developments like Green at Bloomfield, an upscale 140 unit them are likely to have a reduced need to use these are studio- or one-bedroom, with a smat- mixed-use project “just a short walk” from the Bloomfield train station on NJT’s Clock outside The Link at Aberdeen their cars.” tering of two-bedroom units. Station. - Aaron Houston Montclair-Boonton Line. UNIQUE PERSPECTIVE DEPTH ENTERPRISING Excellence

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We look beyond what’s on the surface and create effective solutions for real estate occupiers, owners and investors across all sectors worldwide.

colliers.com/newjersey Accelerating success.

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ABERDEEN CONTINUED FROM PAGE 5 An analyst’s perspective ern or central New Jersey who are likely For Jeffrey Otteau, president of the real estate appraisal and consulting Added Otteau: “Part of the reason that we don’t see this demand for rail to use mass transit because they work in organization, The Otteau Group, one set of numbers clearly illustrates the housing in the southern part of the state is because when it comes to jobs New York City,” McGuinness said. “South demand for transit-centered housing in New Jersey. and locations, South Jersey doesn’t have the same relation to Philadel- Jersey residents who work in Philadel- “From 1990 to 1999, rail towns, or towns with a train station, accounted phia that New Jersey has to Manhattan. … In many cases, Pennsylvania is phia are more likely to drive from their for about 24 percent of the state’s building permits. During the next equally or more affordable than New Jersey, thanks to a lower sales tax, residence to a SEPTA station for that com- decade, from 2000 to 2009, that share climbed to 32 percent. Then from income tax and — depending on the location — property taxes. That’s mute. It will be in- 2010 to now, it jumped, and the category now accounts for 52 percent of teresting, though, to reinforced by the unique tax treaty between Pennsylvania and New building permits.” see whether housing Jersey. Unlike many other areas, if you live in Pennsylvania and work in Most of that demand, he added, is in North Jersey and Central Jersey. development pat- New Jersey, you can choose to be taxed at the Pennsylvania rate, which is terns in South Jersey “At the top of the list is the economic performance of Manhattan, which generally lower than New Jersey’s.” change if more light has been steaming ahead of New Jersey’s, at least since the end of the In 2016, then-Gov. Chris Christie tried to kill the longstanding arrange- rail lines [are] built.” Great Recession, and creating more opportunities,” he said. ment, citing state Treasury estimates that New Jersey was losing out on Michael McGuinness, Also adding to the demand momentum is the fact that within New Jersey, New Jersey nearly $200 million a year of income tax receipts. He did an about-face CEO of real estate an increasing volume of job creation has shifted away from the historical could do more to though, after Subaru of America President Thomas Doll criticized the deci- development associa- suburban orientation to an urban flow. New York is at least partly behind support the hous- sion and reportedly said that if the carmaker had known about the plan tion NAIOP New Jersey that trend, as some companies have fled from Manhattan’s high office -NAIOP photo before building a headquarters and national training center in Camden, ing-near-transit rent, instead embracing places such as Jersey City and Hoboken. trend, said McGuinness, who hopes a bill “we may have reached a different conclusion.” “When New York City and Hudson County cities became job creation introduced in March would do that. Besides the difference in commuting patterns and the smaller population engines, more people were attracted housing that lets individuals easily “Assembly Bill 3654 would require base in South Jersey, lower rents may mean some developers hesitate to connect to those cities,” Otteau said. “They want to connect easily because NJ Transit to establish an office of real es- often, they can’t afford to live in these cities.” take on the higher costs of building a transit-centered project in the area, tate economic development and transit- added Otteau. oriented development and would require Residential rents in a typical New Jersey suburb, for a newer apartment “Rents in South Jersey are about $1.50 a square foot, which is consider- an annual report about the agency’s real “with all the bells and whistles” average about $2 a square foot, he said. ably less that central and northern New Jersey, even though the construc- property information,” he said. “NJ Tran- “It’s double or more in Jersey City, with an average residential rental of $4 tion material and labor costs are roughly equivalent,” he said. “Land may sit may have significant, underused prop- to $5 a square foot,” he noted. “In Manhattan we’re looking at $6 to $7 a be a bit less expensive in parts of South Jersey, but the lower asking rents erty that’s owned adjacent to stations that square foot. People do the math, and if they can’t afford places like Jersey along with the other issues could mean that it doesn’t make as much could be better utilized for additional tran- City or Hoboken, they’ll [move to] Harrison, or South Orange, or even sense to build transit-centered housing on the same scale in the southern sit-oriented developments. Conceivably, further down the line to Aberdeen, where they can catch a train and still get to their job in a reasonable amount of time.” part of the state.” See ABERDEEN on page 15

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RE6 Summer 2018 NJBIZ www.njbiz.com REAL ESTATE & CONSTRUCTION REPORT Grande idea: Mixed-used community under construction near Metropark Station

BY MARTIN DAKS est commercial vacancy rates. “The demographics here mirror the national As part of the redevelopment ef- he Grande at Metropark – a 355- fort, DMR developed multiple concepts trend as baby boomers age out and millennials unit, mixed-use rental community for review by the township, with the ap- pick up the demand. Millennials are not as Tof one- and two-bedroom units – is proved option calling for a mixed-use now under construction in Woodbridge, town center with 95,000 square feet of traditional when it comes to housing.” situated close to the Metropark Station retail, 700 units of residential and 62,000 and the Oak Tree Road shopping district - Fran Reiner, partner and senior project manager, DMR Construction. See METROPARK on page 14 in the town’s Iselin section. The four-building development — set on the site of a former Ronson Metals Corp. facility — boasts a design reflecting industry trends, said Fran Reiner, senior project manager and partner at DMR Ar- chitects. DMR designed The Grande at Me- tropark on behalf of the developer, SAMTD We are New Jersey’s Acquisitions Woodbridge Urban Renewal. “The demographics here mirror the national trend as baby boomers age out and millennials pick up the demand,” said Commercial Loan Reiner. “Millennials are not as traditional when it comes to housing. They want mobility, so more of them are renting, Specialists. and they’re not as tied to an automobile so they want to be closer to mass transit. Along with that, they often want their housing to have a mixed-use component.” Term Loans • Lines Of Credit The Grande at Metropark meets these needs in a number of ways, with apart- Recently Closed Transactions ment features that include stainless steel $20.0 million commercial term loan and $12 million owner-occupied commercial mortgage loan for the acquisition of an automobile dealership appliances and quartz countertops, and located in Morris County, NJ. community features such as a fitness cen- $4.25 million working capital line of credit to a Bergen County-based ter, secure covered parking, a clubhouse, company that designs, installs and services flexible and innovative space management solutions providing operable partitions and glass wall systems a movie theater, and a shuttle to the train for commercial and residential projects throughout the New York, New Jersey, station. and greater Philadelphia areas. Woodbridge Mayor John McCormac $3.0 million working capital line of credit to a Passaic County-based commercial construction company that provides general construction, was all-in for the new development, at- electrical, roofing, licensed asbestos abatement, and demolition for all types of tending the August groundbreaking cer- commercial, governmental and industrial renovation projects. emony and hailing it as a “very exciting $3.5 million line of credit to a Morris County-based company that provides imaging systems, services and products for scientific research and healthcare project…that cleaned up a very contami- applications in pharmaceutical, biotechnology, cosmetics, medical and skin nated site in town” as an added benefit.” care industries. Millennials, along with downsizing $7.0 million working capital line of credit, $2.0 million term loan and a $2.0 million equipment finance guidance line of credit to an excavation contracting baby-boomers, enjoy living near transit and construction company located in Somerset County, NJ. facilities and appreciate not having the $3.0 million working capital line of credit to a wholesale importer and added insurance, maintenance and other distributor of residential furniture based in Middlesex County, NJ. expenses that typically come with a car- $12.5 million guidance line of credit for equipment purchases and a $10 Deborah Scelzo million revolving line of credit to finance parts inventory to a Camden County Sr. Vice President / Commercial centric lifestyle, said Reiner. based full-service trailer dealership that sells and leases new and used trailers and related equipment. & Industrial Lending Developing these new kinds of com- [email protected] munities in growing suburban areas such $2.5 million working capital line of credit to a Gloucester County-based (201) 599-7006 company that operates as a marine engineering and construction company as Woodbridge can present some chal- whose operations include rehabilitating bridge and pier foundations, dredging, lenges but not as much as in urban areas commercial diving, and other marine and waterfront structures. Paul A. Heilmann Sr. Vice President / Commercial like, say, Jersey City where “there’s typi- Real Estate cally not a lot of green space to build on,” [email protected] (201) 599-7076 he said.

Gordon Gorab Sr. Vice President / Commercial Lending Highway-adjacent in East Middle Market Manager [email protected] Brunswick (201) 794-5653 DMR recently retained by East Bruns- wick Township to provide professional services as the redevelopment planner for 19-01 Route 208 North • Fair Lawn, NJ 07410 • ColumbiaBankOnline.com a 14-acre town center on Route 18. The corridor is heavily travelled, but with more than 100,000 cars driving the road daily, the corridor also has one of the state’s high- www.njbiz.com NJBIZ Summer 2018 RE7 REAL ESTATE & CONSTRUCTION REPORT The Hub@New Brunswick: It makes a village

BY MARTIN DAKS workforce, and mass transit options,” said Paladino. “This mixed-use project will be Transit-centered developments in a hotbed for innovation.” Central Jersey are usually positioned to attract locals who commute to work in Unique project for unique city New York or North Jersey, but a $1 bil- lion mixed-use project, The Hub@New He added that The Hub is different Brunswick Station, aims to be the antith- than many other transit-centered de- esis of that. velopments in the state because of the That’s according to Chris Paladino, unique nature of New Brunswick, which president of New Brunswick Develop- hosts employer powerhouses like Rutgers ment Corp., which is managing the proj- University and Johnson & Johnson, and ect on land owned by the city of New leading medical facilities. Brunswick. Paladino’s plan is to attract more “We’re developing The Hub as part pharmaceutical companies, in addition of a self-contained ecosystem, “Palladino to bio-technology and other “innovative” said. “And we recognize the fact that the businesses to the Hub, which is designed train runs both ways – to New Brunswick to offer a live-work-play environment that as well as away from it.” may attract inbound rail commuters from Indeed, one of the project’s e-bro- other parts of New Jersey,or from New chures notes that its “proximity to mass York. transit makes it easily accessible by the So while other developers highlight best and the brightest of today’s work- the upscale amenities in their transit-hub force.” developments, targeting young couples Centered on the former Ferren Mall and empty nesters, Paladino doesn’t stress Parking Deck on Paterson Street – across those details. the street from the New Brunswick train “We are planning on a residential station with a planned skywalk to bridge component that should attract a range the gap – The Hub will encompass 1.7 of residents, including singles, young million square feet on 4 acres, with flex- couples, people with a family, and empty- ible build-to-suit capabilities. nesters,” he noted. Because it’s in an Urban Enterprise But then Paladino added that art- Zone, companies that build in the loca- ist renderings posted on The Hub’s web tion may be eligible for an exemption site, which show residential units above from sales tax on construction materials planned a first-floor retail component on and may qualify for other city and state Paterson Street “may be changed as the incentives. process moves forward.” “The Hub’s location also offers di- So instead of just serving as living rect access to Rutgers University, one center that people use as a commuting New Brunswick Performing Arts Center and The Premiere apartments, under construction in of the nation’s premier public research jump-off point, The Hub aims to flip the New Brunswick. - Aaron Houston universities, a highly educated, skilled process and, living up to its name, hopes to become a hub that uses mass transit as an incoming feeder. New Brunswick: The transit city of Central New Jersey Sometimes you can have it both ways. Part of a concept According to Devco President Chris Paladino, most transit-centered development is designed for residents who want to access rail or other transportation Much of the project is in an early, pre- modes as a way to make their job commute a bit easier. While the Hub@New Brunswick Station targets that market -- the projects plans for extensive construction stage, though demolition corporate development, instead of just retail — it also aims to attract people who will live elsewhere and use the train to come to New Brunswick for work. and preliminary site remediation work On the other hand, some of Devco’s other local projects target an out-flowing market. Those include the Gateway Transit Village, which was completed in have been completed. 2011. Comprising 632,000 square feet on a 1.2 acre parcel, Gateway rises 23 stories on a block that’s adjacent to the New Brunswick train station. But The Hub is more than just a rede- The project brings “renewed life to an underutilized site in the city’s core with active sidewalks, new luxury residences and a focus on diverse activities at velopment project aimed at spurring more the entrance to Rutgers campus,” according to Devco, serving as a gateway to both downtown New Brunswick and the Rutgers main campus.” activity in the city. It’s also part of a con- In an effort to maintain a pedestrian friendly environment, the residential tower was developed over a lower-level retail “podium” that Devco said offers cept of what New Brunswick can be, and it easy proximity to downtown amenities, while providing direct and convenient access to mass transit. fits in with other activities that Devco and A bit further out, but still walkable from the train station, is the mixed-use Heldrich Hotel & Conference Center. Completed in 2007, the Heldrich features other developers have previously done. 248 guestrooms, 40,000 square feet of executive conference space, 48 luxury condominiums, and street level retail space. “About eight years ago we sat down The mixed-use facility — occupying 1.8 acres in the heart of the city’s cultural district, is also home to The John J. Heldrich Center for Workforce Develop- with the city to do a downtown visioning ment, the nation’s first university-based institute devoted to transforming the complex system of workforce development at the local, state, and federal exercise,” said Paladino. “As a result, we levels. identified where developments like the The Aspire, a luxury high-rise built by Boraie Development, “steps away from the New Brunswick train station,” started leasing in 2015 with 238 studio, New Brunswick Performing Arts Center one-bedroom and two-bedroom apartments targeting “high-end lifestyle” residents with features like a 24-hour doorman, gourmet kitchens with custom [a $172 million 450,000-square-foot the- cabinetry, quartz countertops, glass tile backsplash, stainless-steel appliances and in-home washers and dryers. ater complex with a residential compo- The Aspire has features that millennials demanded, including a luxury lounge area with a catering kitchen, pool table, multiple flat screen TVs, an ex- nent that broke ground late last year], The tended outdoor terrace with seating, and a fitness center. Gateway Transit Village [a mixed-use redevelopment project adjacent to the New

RE8 Summer 2018 NJBIZ www.njbiz.com REAL ESTATE & CONSTRUCTION REPORT

Brunswick Train Station and across from aimed at spurring The Hub’s development. the main campus of Rutgers University] Paladino sees a kind of connection and others would have the most impact.” between some historical figures and The He added: “I’ve been fortunate to Hub today. work with Mayor James Cahill — who “I’ve been told that Fred Kilmer [a re- wants the city to continue to develop and tail pharmacist and scientist who helped who provides continuity [Cahill has served guide Johnson & Johnson beginning in the continuously as mayor since 1991] — and late 1800s], Thomas Edison and the John- people like Glenn Patterson [the city’s di- son brothers used to meet near here and New Brunswick Performing Arts Center and The rector of Planning, Community and Eco- talk about innovation,” he noted. “Now, Premiere apartments under construction in New nomic Development]. This isn’t the first more than a century later, we’re bringing Brunswick. - Aaron Houston rodeo for New innovation back to its roots.” < Brunswick, and these people and others in the city government have a high level of expertise. They also have a lot of ideas, and it’s been a plea- sure sitting and speaking with Devco President Chris Pala- them, along dino at the New Brunswick with City Coun- Performing Arts Center and cil. Everyone The Premiere apartments At March Associates Construction, under construction in New here has con- we manage world class commercial Brunswick. - Aaron Houston tributed valu- real estate development projects—and able ideas.” build great relationships along the way. Our Paladino saw The Hub as part of an clients are pleased with the results of our “arc of progress” that was built in part on work, bringing us their repeat business and the projects that his firm and others have referrals for years to come. Take a closer look Multi-residential already done. But Devco didn’t come up at March to see hwo we can help you achieve & Mixed Use with The Hub concept by throwing darts your construction goals. Please visit us at: Residential www.marchassociates.com at a wall. “We worked closely with the city to examine a variety of templates, and considered the importance of the mixed-use Shopping component,” Paladino said. “We also Warehouse, Centers, discussed the value of offering a site that Industrial, & Distribution Retail & could serve as biotech or other company’s Centers Supermarkets headquarters, and integrating other com- ponents like significant retail, housing, parking and public places as part of the overall concept.” Devco also spoke with Gov. Phil Mur- Commercial phy after his election, “sharing thoughts & Mixed Hospitality about economic development and job Use Office creation in New Brunswick with the governor and his team,” he added “Ultimately, The Hub was designated as major initiative, designed to create more innovation in central New Jersey, Movie which will enhance the region’s econo- Theaters & Fitness Clubs my,” Paladino said. Entertainment In March, Murphy formally announced his support for the project and its aim to become a hub of innovation. For more information about how March can help with your next project, visit us at our newly renovated site: “For too long, New Jersey has been left out of the growing national innova- www.MarchAssociates.com tion economy,” Murphy said. “By creating a site where high-growth industry can Our Services Include: thrive, New Jersey will begin to foster new General Contracting, Design/Build, ideas and take advantage of the once-in- Pre-Construction, Construction Management, Phone: 973-904-0213 Project Management, Site Development, a-generation chance to remake the state Website: www.marchassociates.com Construction Consulting, Value Engineering as an engine of economic opportunity.” Email: [email protected] & Project Feasibility Then in May, the New Jersey Eco- Build it better! nomic Development Authority Board approved a financial agreement with Devco www.njbiz.com NJBIZ Summer 2018 RE9 REAL ESTATE & CONSTRUCTION REPORT Projects sited at Waldwick, Russo Development: Union, Garwood stations

BY MARTIN DAKS gistics are likely to be more challenging. like a clubhouse, a package concierge and like New York City, Jersey City and New- On the other hand, if the downtown area an outdoor lounge, along with ground ark,” he said. When the 110-residential unit Wald- has been designated as one that’s in need floor covered parking. The mixed-use development is being wick Station opened next to the borough’s of redevelopment, the permitting process New Jersey is running out of spare constructed in phases, and plans call for train station in November, Mayor Thomas can be much easier.” space, so instead of traditional “green- 1,264 rental units comprised of one-, two-, Giordano an- Russo development partnered with field” development of empty land, more and three-bedroom apartments with gour- nounced that Dinallo Construction Corp. to build Wald- people are embracing redevelopment of met kitchens and other upscale features. the munici- wick Station, a four-level luxury rental former industrial properties and so-called “Residents will enjoy the convenienc- pality looked complex with studio, one- and two-bed- infill development — building on vacant es that come with living in a community forward to room floorplans aimed at younger cou- or under-used par- welcoming the ples and empty nesters. cels within exist- new residents. It went up on the site of the former ing urban areas. That’s the Demartini Lumber Yard, which was “va- That’s according kind of mes- cant, dilapidated and under-utilized,” ac- to a report issued sage that Ed cording to the minutes of a Waldwick Zon- by New Jersey Fu- Russo, presi- ing Board review. ture, a nonprofit dent of Russo “This development represents a organization that Ed Russo, president and chief Development, direct benefit to the community and promotes redevel- operating officer of Russo Development, at one of the likes to hear. achieves a transit village concept in and opment and infra- multifamily buildings under “When around Waldwick and is a far better alter- structure invest- construction at Vermella you’re build- native than an industrial use,” the board ments. Lyndhurst. - Aaron Houston ing near a train concluded. “It is not intended for a lot of But redevel- Vermella Harrison by Russo Development. station, the locations tend to be in the families but for a good mix of residents.” opment projects -Submitted by Russo Development downtown area of a municipality,” Russo Inside, the apartments feature stain- and greenfield said. “That’s good, because that’s where less steel appliances, hardwood floors, projects typically many people want to go these days. But quartz countertops and other upscale have different risk and cost factors. situated at Union’s train station that con- remember that maneuvering space will trims. The pet-friendly community also “The perception – and the reality in tains exquisite community amenities usually be tight, so the construction lo- encompasses Millennial-friendly touches many cases – is that redevelopment proj- along with about 35,000 square feet of life- ects come with added costs and risks,” style retail,” said Russo. warned the NJ Future report. Other Russo transit developments “For example, the amount of time in progress include Vermella at Garwood a project will take to complete is one Station, which recently broke ground of the factors a developer will consider and is “ideally situated on the New Jersey when calculating risks and cost,” it noted. Transit line.” “Greenfield developments tend to move That mixed-use development will more quickly, thereby having a lower risk/ rise on a former Alcoa Corp. manufactur- cost associated with them, while redevel- ing plant site. To get enough room for the opment projects often take longer due to a 290-plus units — and 18,000 square feet variety of factors like land acquisition ne- of retail — planned at Garwood Station, gotiations, zoning variances and the like. Russo said he had to work hard and as- Land costs, another important developer semble and integrate four separate sites consideration, tend to be higher for rede- from 2014-2017. Upon completion, the velopment projects because they usually apartments will offer “luxury community involve negotiating with multiple land- amenities” like a pool, fitness center with owners and involve greater complexity.” yoga room, and a clubroom with a media “Most of our transit-oriented projects room and golf simulator. are located in redevelopment areas,” said When apartments are placed along a Russo, referring to designated sites that rail line, “the project needs special con- may qualify for streamlined permitting siderations,” Russo added. “We spend a and other incentives. “There are many ton of time and money evaluating acousti- benefits to this designation,” including the cal engineering and other issues. You end potential to qualify for a payment in lieu of up building it very differently from a non- taxes, or PILOT, program. transit project.” That doesn’t mean the process is al- At the Waldwick site, which is about ways easy. It took more than three years 40 feet from the rail and has 600 feet along of talks with the municipality, and a court the track, “the windows have a very high dispute with Kean University, until Rus- [soundproofing] rating and enhance- so’s mixed-use redevelopment project, ments like wall acoustical clips to help Vermella Union — on the 55-acre former further isolate any sound.” Merck site in Union Township —could The demand for transit-centered break ground in late 2017. housing “appears to be a long-term one,” “The site is near both Kean University Russo added. “We’re continuing our focus and the Union Train Station,” said Russo. on projects that are close to transit hubs, “It offers a short commute to destinations with many in urban areas.” <

RE10 Summer 2018 NJBIZ www.njbiz.com REAL ESTATE & CONSTRUCTION REPORT Millennials magnet: Jersey City seen as affordable alternative

BY MARTIN DAKS have to go back almost half a century, to ing ground floor retail, below-grade park- He couldn’t elaborate on the develop- the 1970s, to find average residential rents ing and a publicly accessible landscaped ment’s new direction but said he thinks the Maybe the biggest the driver of de- of about $335 a month in Manhattan, ac- promenade. The project was slated to fundamentals in Jersey City are still there. mand for transit-centered housing in cording to one published report. By the include two new seven-story residential Some transit-friendly municipalities North Jersey is the high cost of living in time the 2000s rolled around, rents had buildings along Baldwin Avenue designed don’t embrace the kind of dense develop- Manhattan. exploded to $3,500 a month, the bottom to “allude to the site’s industrial past while ment that Jersey City’s seeing, he added. “First, people started bypassing New range of today’s Manhattan market. enhancing the existing street grid,” with “Hoboken has a PATH station, but York for Brooklyn,” said Robert Antoni- Jersey City may have been a hot two 25-story towers located behind them, it’s surrounded by vacant parking lots cello, president of Grid Real Estate. “Then market for some years, but the Journal set back from Baldwin Avenue. and other underperforming real estate when the Brook- Square submarket initially lagged be- But even an experienced developer because much of Hoboken sees itself as lyn market got hot, hind the city’s downtown and waterfront like Argent — which owns Grand Central Victorian Brooklyn,” Antonicello said. they started flock- areas. That changed around 2010, when Terminal in New York, along with some “But Jersey City always saw Manhattan as ing to places like the city council approved a 50-year rede- 1.3 million square feet of transferable de- the example to follow, with 40- to 70-story Jersey City.” velopment — called Journal Square 2060 velopment rights and the land under 140 buildings. Newark is following that model Grid provides — opening the door for high-rise develop- miles of railroad tracks north of the New now, and so is New Brunswick.” advisory services ment around the PATH Station. York — can sometimes stumble. And they’re rapidly filling up with to companies like According to the Baldwin Place devel- “The market has changed, and Argent Millennials and others. < Argent Ventures, a opers: “The purpose of the Journal Square is rethinking its strategy regarding Bald- real estate invest- 2060 Plan is to foster the redevelopment win Place,” said Antonicello. Bob Antonicello, advi- ment and develop- of Journal Square, sor to Baldwin Place in ment firm that has Jersey City’s cen- Journal Square. - Photo been in discussions tral business dis- provided with Jersey City of- trict, by providing ficials about building a five-acre mixed- for transit-orient- use project, called Baldwin Place. Slated ed development of for the site of the former Muller Pasta fac- new housing, of- tory, which has been vacant for almost fices, commercial two decades, the location offers a short and public open walk to the Journal Square PATH station. spaces within “Today, transit-centered projects are walking distance the bulk of the business that I see,” said to the Square and Antonicello. “Developers want to be sure transit facilities, their projects are close to transit and the returning Jour- convenient connection to New York. Pri- nal Square to a mary choices are the ones within walking flourishing cen- distance of PATH, and secondary ones are tral business and close to a light-rail line. shopping destina- “I’d say about one-third of the people tion.” moving to these kinds of developments in The Journal Jersey City, and Hudson County in gen- Square 2060 ini- eral, are coming out of New York because tiative means that they want more value,” he said. “About projects like Bald- one-third are local people upgrading or win Place can be otherwise moving with Jersey City; and the developed under remainder are coming from elsewhere.” an “as-of-right” Overall, the renters are mostly mil- use, which can lennials looking for full-amenity buildings speed the approv- that are close to transit centers, although al process since there are also some baby boomers and no zoning deci- empty nesters that have sold their home sions are involved in the suburbs. under it. Instead, A recent study by accounting and a developer may consulting firm PwC backs that up, noting only be required Jersey City is one of the municipalities that to submit its plans “cite the influx of not just millennials, but to the local plan- highly educated millennials, as driving re- ning board for site cent growth.” plan review. Antonicello said this has driven an “escalation” among developers to see who Argent Ven- can offer the most amenities, including tures’ original a doorman, a lounge area, a refrigerated blueprint for Bald- room to hold deliveries and a concierge. win Place called There was a time when Manhattan for phased con- Journal Square Transportation Center in rents were affordable, and Jersey City was struction of about Jersey City. - Photo by Flickr/quiggyt4 regarded as a kind of backwater. But you’d 980 units featur- www.njbiz.com NJBIZ Summer 2018 RE11 REAL ESTATE & CONSTRUCTION REPORT JMF Properties: Focuses on rail station opportunities BY MARTIN DAKS

JMF Properties has made transit-centered development the backbone of its development business. JMF President Joseph Forgione al- luded to this last year when he broke ground on Quin Sleepy Hollow — a luxury rental community of 212 residences in the Sleepy Hollow section of Plainfield — de- claring that a location near a train station is “the single most important amenity a town can have.” Quin Sleepy Hollow, now under construction, will comprise 212 luxury rental residences set about a half-mile from Plainfield’s Netherwood train station and Clarus Maplewood Exterior. - Mike Van Tassell less than a mile from the city’s Fanwood train station – both on NJ Transit’s Rari- tan Valley Line. Forgione hopes to attract Further burnishing its transit-friendly one-way or round trip. the groundbreaking. “It represents one of commuters, young professionals and credentials, JMF Properties is working Plainfield Mayor Adrian Mapp thinks the single largest investments in the his- empty-nesters to the project, which boasts with NJ Transit to ensure that a bicycle- the project is a positive development. tory of our city. This project will not only a suite of amenities including a club room share program at Quin Sleepy Hollow will “There is no clearer representation transform a large, blighted property into a with common kitchen, a community also be available at the Netherwood and of the renaissance that is underway in vibrant residential community, but it will room-business center, a theater-multime- Fanwood train stations, so residents can the city of Plainfield than this bold and also revitalize a major corridor and spur dia room and a bike-share program. cycle to and from the station easily, either innovative project,” Mapp announced at additional retail and economic develop-

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RE12 Summer 2018 NJBIZ www.njbiz.com REAL ESTATE & CONSTRUCTION REPORT ment. I am grateful that JMF Properties planned amenities for resi- meets the township’s design standards,” chose to invest in our resurgent city.” dents, including a fitness according to law firm McManimon, Scot- JMF Properties currently has more center and business center,” land & Baumann, which serves as Berke- than 1,700 rental units and 933,000 square he said. “The development ley Heights’ bond counsel and analyzed feet of retail space either under construc- includes a courtyard-style the PILOT proposal. tion or in the development phase, all of outdoor plaza and covered The development “generates more which is expected to break ground no later parking.” tax revenue to the township than the cur- than 2019. For the town’s planning rent assessment,” or $406,249 annually The company’s commitment to tran- board, it was a no-brainer. The compared to the current $56,157, accord- sit-friendly properties and the warm re- Stratton House development, ing to the firm’s report. Stratton House ception they’re getting is also evident from which was granted a PILOT, also “helps the township meet its afford- projects like Clarus Maplewood, a three- or payment in lieu of taxes able housing requirements,” it said. story “boutique building” in the town of Estling Village Exterior. - Photo provided arrangement, produces a fi- See JMF on page 15 Maplewood. It opened in October 2017, nancially feasible project that on the site of a former post office just steps from Maplewood’s train station. “Today, Clarus Maplewood is 100 percent leased, with ground-floor retail that includes Starbucks, BCB Bank, Abby Haliti Salon, and The Cassidy Bar + Kitchen,” Forgione noted. Amenities include a fitness center, resident lounge, billiards and a luxury lobby with double-sided fireplace. A transit theme runs through many of JMF’s properties, but the firm makes a point of differentiating them. “There are 166 NJ Transit railroad stations in New Jersey, and each one has welcomes its own unique character,” Forgione said. “Taking a one-size-fits-all approach to developing properties near them doesn’t work. We’ve built our reputation as a developer by embracing the unique character of each location, working closely with local officials, and creating a development plan that meets consumer demand, en- hances the local landscape, and improves character of the neighborhood, while pre- serving its desirable qualities.” to its Matrix Global That outlook was evident in Estling Village, a community of 100 rental townhomes that opened in early 2016 in Den- Logistics Park - ville and today is 90 percent occupied. It’s right next to the town’s train station on the Montclair-Boonton and the Morristown lines. The project replaced a blighted for- Staten Island! mer factory with a transit-friendly residential development that offers amenities like a fitness center, resident clubhouse with a club room, kitchen and cybercafé, and an onsite bike-share program. Two other planned developments – Coming Stratton House in Berkeley Heights and NEW Clarus Glen Ridge – highlight JMF’s strate- Soon... gy of delivering on a unified transit-related theme without droning into a cookie-cut- ter approach. Spec Warehouse Building Stratton House, which recently re- ceived the township’s planning board approval, will replace a shuttered Kings Food Markets with a 150-unit luxury rent- 450,000 SF al community. It will be located only two blocks from the Berkeley Heights train station, which services the Gladstone branch Matrix Development Group and the Morristown line. The development is also walking dis- Real Estate Services tance to shops, restaurants, a supermar- Commercial • Industrial • Mixed Use • Golf & Hospitality • Residential ket and retail businesses, according to Forgione. “It will feature 8,000 square feet of Forsgate Dr., CN 4000 • Cranbury, NJ 08512 • 732-521-2900 • www.matrixcompanies.com www.njbiz.com NJBIZ Summer 2018 RE13 REAL ESTATE & CONSTRUCTION REPORT

METROPARK CONTINUED FROM PAGE 7

square feet of office space, in addition to parking. It includes a site for a six-level, 120-room hotel and a neighborhood park of additional apartments, townhomes, retail and parking. “Historically, larger municipalities have been better equipped to handle redevelopment and have had a better understanding of the issues,” said Reiner. “But smaller municipalities are also catching on, learning the ropes and examining their options. It’s one way to attract millennials while offering local baby boomers an option to stay in an area they like.” The preference of many millennials and some baby boomers for an urban lifestyle actually dovetails nicely with the layout of many New Jersey cities, which already have underused downtowns and transit hubs in place. The state also has an aging infrastructure that’s ripe for an upgrade or replacement, Reiner noted. “In the 1970s, there was a trend to separate the downtown and office areas from the residential areas,” he said. “At 6 p.m. on weeknights, everyone left their The Grande at Metropark by offices in the downtown area and drove DMR Construction. home to suburbs, turning downtown into -Submitted by Ronson Road LLC a ghost town. But since the 1990s, there’s

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RE14 Summer 2018 NJBIZ www.njbiz.com REAL ESTATE & CONSTRUCTION REPORT been a trend to bring the residential com- JMF planning 8,500 square feet of amenities, “This has helped create meaningful op- ponent back to the downtown areas, in a CONTINUED FROM PAGE 13 including a state-of-the-art fitness cen- portunities for developers who are willing ter, club room, library, business center, a to urbanize appropriate suburban loca- live-work-play concept that supports the The Clarus Glen Ridge development, local retail and commercial segments too. a 110-unit luxury rental community that’s courtyard-style plaza, and a dog run, as tions with residential and mixed-use de- It’s not just happening here in New Jersey. scheduled to break ground this fall, will well as a covered parking garage.” velopments that satisfy the growing mar- It’s a national trend.” be located two blocks from the Bay Street Today’s renters want to be in a loca- ket demand for this type of lifestyle. Reiner noted he’s not sure how long train station on NJ Transit’s Montclair- tion with walkable access to downtown “Transit-oriented development is our this latest trend will last. Boonton line. shopping, restaurants, and mass-trans- core business,” he summarized. “More “Everything’s cyclical,” he said. “Right “Clarus Glen Ridge will provide an portation, he added. than anything else, when we begin a now the demand is for rental apartments, alternative to city living, but it is just a “What everyone is telling me is they new project, we look forward to creating but that’s driven at least in part by demo- short walk to the popular shops, restau- want to be able to walk to get a cup of a property of lasting value that can have coffee in the morning, and they want to a dramatic positive effect on a neighbor- graphics and economics. There has been rants and entertainment venues of downtown Montclair,” said Forgione. “We’re be near the train station,” Forgione said. hood and even an entire municipality.” < some concern that multifamily developments are getting built now, but when the millennials have children, they may want to move back out to single family homes in the suburbs. What’ll happen to all those WE PARTNER apartments if this occurs?” The jury is still out on that matter, but WITH there are some encouraging signs. “Hoboken was worried about mil- DEVELOPERS lennials moving out once they started a family, but it appears that a significant TO BUILD number of millennials with children are staying put,” Reiner noted. “Personally, OPPORTUNITY I’m bullish on these transit-centered and other multifamily developments for the COLLABORATION THAT foreseeable future. There will always be PROMOTES YOUR people who want an active, pedestrian BOTTOM LINE friendly environment that’s near public transportation.” < ELEC partners with business and professional organizations to promote projects for developers.

Market support and advocacy We advocate for policies, legislation and regulations ABERDEEN that have helped initiate major bridge-building projects, CONTINUED FROM PAGE 6 win approvals for pipeline construction and authorize large-scale urban development programs.

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Skills + experience + safety = productivity ELEC is a labor-management organization built on collaboration between Local 825 Operating Engineers and its union contractors. We continually invest in workforce credentialing and training that ensure greater skills, a superb record of safety and a more profitable bottom line. The LINK at Aberdeen Station. -Aaron Houston Efforts that make a difference Learn how we can help your business develop! Contact Kate Gibbs at 973-630-1011. selling off some of these properties could help the state’s revenues, too.” A move like that may make things easier for developers like Schwartz, who said that rail projects like The Link at Aberdeen Station can involve multiple permitting and “negotiating with multiple owners” including, in this case, New Jersey Transit. That’s on top of environmental remediation and other efforts typically needed to redevelop these train-centric areas, which often housed commercial or industrial fa- Engineers Labor-Employer Cooperative (ELEC) is a Building On cilities. collaborative organization with representatives from: Common Ground “[In Aberdeen] we had partners in the International Union of Operating Engineers Local 825 deal who were designated redevelopers,” Associated Construction Contractors of New Jersey Greg Lalevee, Chairman | Mark Longo, Director Schwartz said. The designation is part of a Construction Industry Council of Westchester & Hudson Valley WWW.ELEC825.ORG process that can speed up the cleanup of Construction Contractors Labor Employers of New Jersey an area that’s been formally designated as ELEC is the labor-management fund for IUOE Local 825 blighted or in need of redevelopmen. < www.njbiz.com NJBIZ Summer 2018 RE15 Elec_Developers_UTCA_7.5x10.indd 1 1/30/15 10:50 AM Future Meet Your ˆ Clients 2018 Event Sponsorship Opportunities

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