Lions Group’s proposed 34-story, 360-unit apartment tower at 701 Newark Ave. in Jersey City will include 90 units for low- and moderate-income renters and a significant open space and pedestrian component. — Rendering courtesy: Lions Group via JLL
By Joshua Burd
Lions Group has secured some $200 million in financing and capital commitments for a planned 34-story, 360-unit apartment tower in Jersey City’s booming Journal Square section.
According to JLL’s capital markets group, which advised on the transactions, Goldman Sachs Alternatives provided the solution in connection with the mixed-income Homestead Gateway project at 701 Newark Ave. That includes a construction loan, a bridge facility, Low-Income Housing Tax Credit equity and a purchase of tax credits under New Jersey’s Aspire program, as well as a forward Freddie Mac commitment arranged by JLL Real Estate Capital LLC.
The structured capitalization paves the way for Lions Group to transform a former municipal parking lot into a building that will include 90 units for low- and moderate-income renters — Journal Square’s first new affordable housing in years — alongside 270 market-rate rentals.
“It is extremely rare to see a new development bring so much to the table in terms of affordable housing, union jobs and community benefits,” said Aaron Shirian, a principal at Lions Group. “The City of Jersey City has proven itself to be a national leader in strategic housing development, not only by attracting investment in the multitude of projects we have seen over the last decade, but also by ensuring that those investments go toward thoughtfully planned projects that will provide benefits to the entire community. We are also very thankful to the State of New Jersey, particularly the New Jersey Housing (and) Mortgage Finance Agency and the New Jersey Economic Development Authority, who put in many years of hard work to make this project a reality. We are honored to be a part of it, and we hope to see many more projects like this in the future.”
A team led by Steven Mlenak of Greenbaum Rowe Smith & Davis LLP represented Lions Group, which is based in Great Neck, New York, in securing the nearly $90 million Aspire tax credit award from the EDA this summer. Last week, JLL announced its role in obtaining what it described as a full-stack structured capitalization for the project, which is slated to break ground in early December.
The JLL team included Nicco Lupo, Christopher Peck, Michael Shmuely, Jillian Grzywacz, Alex Staikos, Jimmy Cochran and Tom Didio Jr. They noted that the development will allocate one-third of its site to publicly accessible open space, creating a pedestrian gateway that connects residents and visitors directly to Homestead Place Plaza, improves access to the Journal Square PATH Station and supports the Journal Square 2060 Plan’s vision for enhanced walkability and transit-oriented development.
It also represents a significant workforce development initiative, featuring 100 percent union labor by way of a project labor agreement with Hudson County building trades, JLL said. Additionally, Lions Group has committed to permanent union operations through an agreement with 32BJ SEIU.
“Mixed-income developments like Homestead Gateway demonstrate how thoughtful housing solutions bring together families across income levels to create stronger, more prosperous communities,” said Asahi Pompey, chair of the Urban Investment Group at Goldman Sachs Alternatives. “This innovative approach doesn’t just help address the affordable housing crisis. It drives economic growth, brings neighborhoods together and delivers tangible benefits for families in Jersey City.”
Plans also call for nearly 3,000 square feet of ground-floor retail space and high-end amenities such as a rooftop lounge, a fitness center, bicycle storage and shared workspaces, JLL said. Residents using the Journal Square Transportation Center, which is three blocks away, can access New York Penn Station in 33 minutes and the World Trade Center and Newark Penn Station in 20 minutes.
“Homestead Gateway embodies what thoughtful public-private collaboration can achieve, creating housing that serves multiple income levels, infrastructure that reconnects a neighborhood and investment that supports long-term community and economic vitality,” Lupo said. “Lions Group’s vision, the state’s leadership and Goldman’s highly tailored capital stack combined to deliver a solution that is both financially sophisticated and socially meaningful.”
Lions Group eyes 360-unit Journal Square rental tower with $90 million Aspire award
