A rendering of The Ashton at 2-16 Ash St. in Jersey City — Courtesy: Normandy Real Estate Partners
By Joshua Burd
Normandy Real Estate Partners has closed on two transactions under the federal Opportunity Zone program, as it touts a milestone in its effort to raise $250 million for such investments.
The properties include The Ashton, a 93-unit multifamily building under construction in the Bergen-Lafayette section of Jersey City, Normandy said. Located at 2-16 Ash St., the site is minutes from the city’s downtown and will feature one- and two-bedroom units, part of a growing neighborhood that is expected to add more than 1,000 units within the next 24 months.
The project was granted a 20-year payment in lieu of taxes in connection with its approvals, Normandy said in a news release. The real estate investment management firm, which is based in Morristown, also noted that The Ashton is three blocks from NJ Transit’s Hudson-Bergen Light Rail service, providing a link to Exchange Place for PATH service to Manhattan.
Meantime, Normandy closed on its investment in an 82-unit multifamily building under construction in downtown Hackensack. Located at the corner of Main and Ward streets, the building is a block from the Anderson Street bus station and provides easy access for commuters into Manhattan.
The firm is partnering with The Hampshire Cos. on the project, which has been granted a 15-year PILOT and is part of Hackensack’s ongoing redevelopment. Normandy also highlighted the site’s proximity to the city’s legal complex and Hackensack University Medical Center.
In announcing the deals on Tuesday, the firm said it has raised more than $100 million in commitments to date for Normandy Opportunity Zone Fund L.P., its investment vehicle under the federal Opportunity Zone program. Established under the Tax Cuts and Jobs Act of 2017, the program offers tax deferral and exclusion benefits for investors who steer capital gains into low-income and underserved communities.
Normandy said it will continue to raise capital for the $250 million fund through 2020.
“These initial transactions mark the end of a successful year following the launch of the Normandy Opportunity Zone Fund,” said Jeff Gronning, founder and partner of Normandy Real Estate Partners and portfolio manager of the fund. “Both developments will play major roles in attracting new residents to urban areas undergoing major revitalization stages, with substantial support from local municipalities.
“We look forward to bringing these promising projects to market, while continuing to secure additional Opportunity Zone capital commitments and new investments in the year ahead.”
Normandy Opportunity Zone Fund LP is a discretionary fund that is targeting $250 million in commitments and seeking redevelopment and ground-up construction opportunities located in select Opportunity Zones throughout the Northeast.
