Page 26 - RENJ Sept.21

24 SEPTEMBER 2021
MAKING AN ENTRANCE
New Jersey remains a draw for out-of-state developers — despite the hurdles
For developers from out of state, building in New Jersey can be a challenge. Development often
means redevelopment, frequently on sites with environmental challenges. Approvals have to come from municipalities, and often take a
long time. And out-of-staters are competing with New Jersey-based companies that might have decades- long relationships with state and municipal officials, as well as local engineers and architects.
“There are so many different factors that create barriers to entry for out- of-state firms,” said Brian Whitmer,
a vice chairman with Cushman & Wakefield’s East Rutherford-based capital markets team. He says many out-of-state developers see the appeal of New Jersey sites, especially properties in commuting range of
New York City and large New Jersey employers, but when the developers
that’s about half multifamily and half commercial. The so-called Silver Lake project, on Belmont Avenue near the Newark Light Rail’s Silver Lake station, will also include 20,000 square feet of retail and restaurant space.
Klein was brought into the project by Black Oak Associates of
Towson, Maryland, which owns
the property. The site already has
a supermarket, and Black Oak wanted a partner with a background in multifamily construction for the apartment portion of the mixed-use development. Klein and Black Oak had previously worked together on a Maryland project.
“It’s a good model of what development should be,” said Daniel Klein, president of Klein Enterprises.
“It’s identifying what’s the highest and best use of a site where there’s existing infrastructure.”
The site is near Newark’s Branch Brook Park, famous for its cherry blossoms, and Clara Maass Medical Center. It also provides an easy commute to New York.
Klein says a key to the project’s success was the support of Belleville’s elected officials.
“What’s unique about New Jersey is that municipalities have a lot of control over
the process,” he
Still, there are builders that make it work — generally when there’s buy-in from government officials — and New Jersey remains a draw for many of them.
Baltimore-based Klein Enterprises is completing a 232-unit luxury apartment complex in Belleville, the first New Jersey venture for the company, which has a portfolio
said, whereas development
in Maryland is regulated mostly at the county level. “We found the leadership of Belleville
By Kathleen Lynn
Brian Whitmer
realize that getting approvals can take years, they often walk away.
“There’s so much to navigate,” Whitmer said.
Klein Enterprises, a Baltimore-based developer, is marking its entrance to New Jersey with a 232-unit luxury apartment project in Belleville. Known as Silver Lake, the development on Belmont Avenue will capitalize on a location near Newark Light Rail service and other amenities in the township.
to be nothing but welcoming and collaborative in trying to figure out what’s best for the town.”
The company, which recently announced a $200 million capital commitment from Almanac Realty Investors for projects along the East Coast, has been so happy with the experience that it is pursuing other opportunities in New Jersey, Klein said. It’s now in the predevelopment stage with another New Jersey multifamily project, in Metuchen, but declined to give details because it’s still early in the process.
Another out-of-state-firm, RMS Cos. of Stamford, Connecticut, made
its entrance to New Jersey last summer when it acquired a 6.4-acre development site at 1255 Magie Ave. in Union Township for $6 million.
It’s now about to open leasing at its 153-unit apartment complex, which has redeveloped the site of the former Schaefer Salt Factory.
“It fit all our criteria,” said Patrick Carino, who handles acquisition and development for RMS. The 25-year-
Daniel Klein
Courtesy: Klein Enterprises