Page 18 - RENJ May 2021 Issue 53

16 MAY 2021
From left: The development and design team for Journal Squared includes Jonathan Kushner, president of Kushner Real Estate Group; Jeremy Kaplan, the firm’s chief operating officer; and Marc Kushner, its chief design officer.
the PATH station, under a recently announced partnership with the operators of Newark’s Prudential Center. Mayor Steven Fulop joined Devils Arena Entertainment in February to detail the project, which calls for transforming the century-old, underutilized venue into a modern, 3,300-seat facility that could draw both superstar performers and up- and-coming artists.
The project is slated for completion in early 2025, creating what Fulop says will be an anchor institution akin to the city’s colleges and universities, the Liberty Science Center and others.
“The Loew’s is going to be right there as part of that conversation,” he said. He noted that
the city also
later this year, following a multiyear delay and legal battle between the developer and the city.
“For the first time we’re seeing residential development at a large scale,” Fulop said, later adding: “Every major developer in New Jersey has been looking at properties there and has reached out to
(the city planning department),
so it bodes well for the future of Journal Square, with regard to what the professional development community thinks.”
Notably, the submarket has caught the eye of New York-based real
estate firms that are now “coming
in with two feet,” according to Eugene Paolino, a Jersey City-based attorney with Genova Burns LLC, who represents a host of developers in Journal Square and throughout the city. Many have been aggressive about entering the market, especially after observing the success of KRE Group’s first tower.
“There were developers that were waiting in the wings, thinking of
the Journal Squared project as the litmus test,” said Paolino, a partner in Genova Burns’ land use and approvals and commercial real estate redevelopment groups.
Stakeholders can only hope the influx of new residents comes alongside new commercial
activity. Fulop
partnership decide to go,” Jonathan Kushner said, later adding: “You’re never going to time these things exactly right. Each of these buildings from beginning to end takes years to build, so to some degree you have to take a leap of faith that, when you open, times will be good or, when you open, there will people who want to
live there.”
That will be all the more likely as Journal Square continues to evolve, with new initiatives on the horizon that will enhance it as a destination. Chief among them is the $72 million restoration of the historic Loew’s Theatre, located directly east of
plans to create
a new Jersey
City Museum
and community
center nearby,
at 25 Sip Ave.,
at a five-story,
55,000-square-
foot building that it acquired in 2018.
“The city is investing a significant amount in the arts and we do believe that it is ultimately going to be the draw that’s going to get people back to Journal Square,” Fulop said. He also expects to see new restaurants and small businesses come to the area around the Loew’s Theatre once the restoration is complete.
That doesn’t mean developers are waiting around. Other projects of varying sizes have opened in Journal Square in recent months, including 122 micro apartments at 190 Academy St. by KSNY and Strategic Properties. In mid-April, Hopkins Group Management unveiled 40 new loft apartments at a 103-year-old Elks lodge building at 275 Magnolia Ave., adjacent to the Loew’s Theatre, in the firm’s latest Journal Square project.
The neighborhood now boasts a development pipeline of increasingly ambitious projects, such as a recently announced, 902-unit apartment
tower at 500 Summit Ave. by HAP Investments and a nearby 386-unit high-rise by former New York Gov. Eliot Spitzer. That’s not to mention Kushner Cos.’ One Journal Square, a massive mixed-use development that would include more than 1,700 apartments and could break ground
Steven Fulop
+
www.INVESTJERSEY.city
noted that
demand for
office space in
Journal Square
had been strong
heading into the
pandemic, while
he expects to
see additional interest from retailers.
KRE Group has also seen a response from commercial users, albeit in a small sample size. Journal Squared phase one featured a small retail space that attracted a café and eatery known as Wealth Kitchen. Phase two has added some 16,000 square feet
of ground-floor space, which Kaplan said is now drawing attention from prospective tenants.
“We’ve seen incredible interest from everything from food providers to grocers,” he said. “People see the demand and they see the location relative to the train — and we’re just getting a lot of interest.” RE
Eugene Paolino
Photo by Aaron Houston for Real Estate NJ