JERSEY CITY, NJ—HAP Investments LLC is about to enter the New Jersey real estate market in a big way. The New York City-based international real estate investment and development company announced today it is in contract to purchase 500 Summit Ave. here and plans to build a high-rise residential tower at the site.

The company will acquire the 80,000-square-foot parcel in Journal Square for $28 million, according to the Wall Street Journal. Concrete development plans were not announced, nor were possible incentives to be offered by Jersey City in connection with the “HAP Tower” mixed-use development. The city provides tax abatements for developers lasting between five and 30 years, offering the longest terms to those developing new projects in targeted areas, such as Journal Square.

HAP Investments says the site can accommodate a 42-story rental building with commercial office and community facility space. The anticipated cost of the 1-million-square-foot development is estimated to be approximately $400 million.

“We are excited to have purchased this strategic site in Jersey City and look forward to building a future development that will provide new rental housing for local residents as well as others in the Metropolitan area, in addition to adding needed office and community facilities to this thriving urban location,” said Eran Polack, CEO, HAP Investments. “HAP Investments is also committed to sound environmental development, and to creating an open urban green space environment for this project.”

Jersey City Mayor Steven M. Fulop said, "Our administration has made the redevelopment of Journal Square a priority and we are pleased to welcome this 42-story residential tower to the substantial projects just underway on the Square. HAP Investments' announcement is further affirmation that our policies are working to attract such significant development."