Update on the Hovnanian/Equity Residential development in Jersey City.
From the Record/Herald:
The two towers
By HUGH R. MORLEY
Two 500-foot towers with 901 housing units will rise above the Jersey City waterfront as a more affordable alternative to Manhattan, two developers announced Wednesday.
Red Bank’s K. Hovnanian and Chicago-based Equity Residential said they each will build a tower on a 1.76-acre parcel bought from Hartz Mountain Industries of Secaucus for $70 million.
The two will target different markets. Hovnanian will build 420 condominiums, mostly one- and two-bedroom apartments. At the lower end, studios are expected to sell for $300,000. And a small number of penthouses will go for $2 million.
Equity Residential’s tower will contain 481 apartments. Studios will likely rent for upward of $1,900 and two-bedroom units will probably go for more than $3,000, the company said.
The towers are scheduled to be completed in spring 2009.
Still, there is plenty of local competition for buyers. Just a few blocks away, Donald Trump is building more than 850 up-market units in two towers.
Farther north along the coast, Hovnanian this weekend will begin selling 268 loft apartments and 68 town houses that the company is building in West New York, among several other projects under construction on the waterfront.
Scott Selleck, a broker at NJ Gold Coast Real Estate in West New York, noted that the Montgomery Green condominiums nearby has yet to sell out.
“It’s a risky situation,” he said. “There is a possibility of oversupply. It may be difficult to move those condos.”
He said there is a big demand for rental units in that area, however.