Plans for the first phase of Artwalk Towers call for 595 luxury apartments at 808 Pavonia Ave. in the Journal Square section of Jersey City. — File photo / Courtesy: Kennedy Wilson
By Joshua Burd
KRE Group has officially scrapped plans to house a highly touted museum in its latest Jersey City rental project, opting instead to bring affordable housing and potential community space to the site under an agreement with the city’s new mayor.
The pivot, which Mayor James Solomon announced Monday, comes with construction well underway for the planned 49-story, 595-unit building that will mark the first of two phases at 808 Pavonia Ave. It also comes amid what were already dim prospects for the proposed satellite location for Paris’ acclaimed Centre Pompidou — a longtime passion project of former Mayor Steve Fulop — which faced political pushback and questions about funding in his waning days in office.
Solomon, who praised KRE’s decision, did not provide details on the number of affordable housing units and affordability levels but said specifics would be released soon.
“The previous administration left Jersey City with no financially responsible way to move forward with the Pompidou concept,” Solomon said in a written statement. “But we appreciate KRE’s willingness to partner with us on a new vision. They came to us with a proposal for pivoting from the museum to badly needed affordable housing. That kind of flexibility deserves recognition. It’s exactly the kind of partnership this city needs, and the type of work that will be a trademark of this administration.”
Located in the booming Journal Square district, the first tower is slated for completion around summer 2028. The new Artwalk Towers will sit just behind the historic Loew’s Jersey Theatre and across from the Journal Square PATH station, following KRE’s landmark three-phase, 1,840-unit Journal Squared complex that sparked the neighborhood’s resurgence.
“We’ve been building in Journal Square for over two decades, and we’re invested in this community’s future,” KRE Group President Jonathan Kushner said. “We want what is best for the neighborhood and all of Jersey City and reimagining this project as affordable housing pushes forward our long-term dedication to building a better Jersey City. We’re proud to partner with the city on this.”
The developer secured a $175 million senior construction loan for the first tower from Kennedy Wilson in late 2024. About seven months earlier, state officials effectively canceled funding for what would have been Pompidou’s first satellite in North America — to be located at a nearby building on Sip Avenue — citing concerns about its financial viability and an estimated annual operating shortfall of some $19 million.
Fulop seemingly rescued the plan in summer 2024 when he announced an agreement with KRE Group, pledging a 30-year payment in lieu of taxes agreement in exchange for moving Centre Pompidou x Jersey City to a 100,000-square-foot space at Artwalk Towers. The Jersey City Redevelopment Agency was then slated to consider a $40 million bridge loan for the project last fall but canceled the meeting due to a lack of quorum.
Solomon, for his part, said last month that Pompidou was “dead,” speaking at a press conference on the city’s $255 million budget deficit.
“Journal Square’s revitalization is going to be for our residents who deserve access to affordable housing and my expectation is to provide them with much needed space for community, whether that be for recreation, seniors, artists or a mix of the above,” Ward C Councilman Tom Zuppa said in Monday’s announcement. “I’m proud to deliver on these promises for our residents with Mayor Solomon.”
KRE lands $175 million loan from Kennedy Wilson for new 595-unit Journal Square tower
