JERSEY CITY, NJ−This city in the midst of a multifamily housing boom – with more than 10,000 units in the pipeline – had another groundbreaking this week as work begin on a second Trump residential high-rise in downtown’s Powerhouse Arts District.
Jared Kushner – whose father-in-law is Donald Trump – Jersey City mayor Steve Fulop, and others officiated with the shovels at the ceremonial start on Wednesday to a $193.5 million development, which will be known as Trump Bay Street.
Kushner has partnered with KABR Group to build the rental tower, which is the second phase of a project begun with Trump Plaza a block away. Trump Plaza, a 55-story condominium building, opened in 2008.
“This is really phase two for Jersey City,” Kushner said at the ceremony. “We plan to spend a lot more time here, because we think this is a city on the rise.”
In its first-quarter report, HFF said the apartment market along the entire Gold Coast is still riding a wave of demand that only began to crest in 2010. HFF’s Jose R. Cruz predicts demand will remain steady “and grow another 1.6% over the next five years.”
Last year, average rental rates for Hudson Country rose to $2,714 from $2,676 in 2012. HFF’s analysts say that even as thousands of units emerge onto the market in Jersey City over the next several years, rent growth will be at most only “slightly mitigated.”
Trump Bay Street will have 447 rental apartments with 144 parking spaces. The ground floor will have 11,000 square feet of retail space. Amenities will include a rooftop deck, a spa and a cyber café.
The project was awarded a five-year city tax abatement, structured like this: no taxes for the first year, 20% taxes to be paid in the second year, and continuing annual increases of 20% until the agreement expires.
The building is expected to open in two years.