Prism Capital Partners launched its multifamily platform with Parkway Lofts, a collection of 361 apartments at the site of a historic General Electric Co. building in Bloomfield. — Courtesy: Prism
I would venture to say that developers don’t scare easily, at least not the ones that succeed in New Jersey. Prism Capital Partners is no exception, with a penchant for finding complex, labor-intensive projects that can take a decade or longer to complete. Look no further than properties such as Edison Lofts in West Orange, where the firm restored, converted and expanded a former Thomas Edison factory complex to create 334 upscale apartments, but only after withstanding a housing crash, a painstaking historic preservation process and litigation by local residents.
As you’ll read in this month’s cover story, such projects are central to the growth of Prism’s multifamily housing platform. The firm since 2013 has developed nearly 1,000 units, with hundreds more under construction, thanks to its work at Edison Lofts and other industrial-to-residential conversions in northern New Jersey. Notably, it has balanced those projects with a growing pipeline of ground-up, midrise buildings in towns such as Woodbridge and Dunellen, which boast strong demographics and transit-served downtowns despite being lesser-known locations.
Our March issue also takes us to Red Bank, the site of a newly opened, 57-unit luxury rental building by Denholtz Properties. The property is the latest piece of the developer’s plan to re-energize the borough’s west side, following a decision to move its headquarters there in 2019, and comes with some 7,000 square feet of retail space that could bring new businesses to the neighborhood. It’s also one of the firm’s many investments in Red Bank, where it has spent some $50 million on development, acquisitions and other projects in recent years. That’s likely to continue, according to CEO Steven Denholtz and a team that has gone all in on the popular Monmouth County town.
Elsewhere in this edition, we highlight the still-booming market for multifamily investment property in New Jersey. Demand is so strong from buyers and renters alike that it takes increasingly less to capture a value-add investment. As brokers and owners tell us, a coat of paint and a partial kitchen remodel are seemingly enough to raise rents and achieve a return. It’s due in large part to the continued need for moderately priced apartments and soaring investor demand for workforce housing.
You can find those stories and more in the latest edition of Real Estate NJ, which I hope provides a thoughtful, current look at the state of New Jersey’s multifamily residential sector. Much of the asset class has recovered from any short-term pain caused by the pandemic, so it seems, given the continued development activity and transaction volume. Let’s hope that other parts of the industry can follow suit, as we look ahead to the spring and the prospect of a fully reopened state. In the meantime, please continue to reach out with your feedback, questions and story ideas.
Thanks for reading and enjoy the issue!