By Joshua Burd
A developer has scored a $49 million construction loan to build a combined 51 luxury townhomes and affordable rental units in the Monmouth County borough of Allenhurst.
The lender, S3 Capital, announced the deal this week while noting that the project by RedHoek+ will bring new, high-quality housing to an area where new supply has been limited by geographic and zoning constraints. That will include 28 townhomes that will be within walking distance of the Atlantic Ocean and Deal Lake, plus a 23-unit fully affordable apartment building, accounting for two phases of a long-awaited project near Main Street and Elberon Avenue.
“Allenhurst is a very close-knit community where demand is driven by highly localized buyer dynamics,” said Shawn Safdie, head of origination at S3 Capital. “Deep community knowledge and strong local relationships are key components of delivering successful real estate projects in a submarket like this. Our familiarity with both the sponsor and the needs of the end buyers make us uniquely qualified to underwrite this financing with precision and to provide construction capital efficiently.”
Steven Jemal, the private construction lender’s managing director of origination, added: “In markets with meaningful barriers to entry like Allenhurst, the margin for error is small and execution becomes critical. Projects that are appropriately scaled and aligned with local demand tend to perform well over time, which was central to our underwriting.”
According to a news release, the townhouse component will consist of 28 four-bedroom homes with attached garages, modern layouts and high-end finishes designed to meet the expectations of today’s coastal buyer. The apartment building’s 23 affordable units will diversify the project and contribute to the borough’s housing mix, S3 Capital said, noting that the broader development plan calls for additional residential phases such as a condominium building with more than 30 homes.
The firm added that, with limited developable land and strong end-user demand, home values in Allenhurst consistently command a significant premium relative to surrounding markets.
RedHoek+, led by CEO Lee Cohen, is a longtime S3 borrower that has completed seven successful transactions with the lender, the news release said.
“Allenhurst is one of the most coveted addresses on the Jersey Shore, and we’re committed to delivering a development that honors that,” Cohen said. “At RedHoek+, the standard has always been simple: build what the market deserves, not just what it will accept. This project represents the kind of thoughtfully designed, high-quality community we’ve been refining across New York, New Jersey and South Florida.
“S3 has been with us since the earliest days of our platform — our relationship predates the scale we operate at today — and the fact that we continue to grow together is a direct reflection of how they perform. They are a true capital partner, not just a lender, and that alignment is what allows us to execute at this level.”
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