As bulldozers bumped outside, officials gathered within a few steps of the PATH station for the long awaited ground breaking of Journal Squared on Oct. 21.
The development is adjacent to the Journal Square PATH Station and will be comprised of 1,838 rental residences and 36,000 square feet of retail space, in three towers of 53, 60, and 70 stories tall. When completed, the 70-story tower will be the tallest residential building in the state.
The project will include 920 parking spaces, and developers are seeking LEED certification for all three towers.
The project is located at the intersection of Pavonia and Summit avenues and will include a pedestrian-friendly public plaza.
The project is the next step to revitalize the area around the Journal Square PATH and bus station, ushering the district into a new era and allowing it to compete with the Jersey City waterfront for prestige as an urban hub. All three elements of the project represent the start of the redevelopment expected to transform Journal Square.
The ground breaking was for the 53-story tower with 538 residences, which is expected to be completed by 2016. The final phase is expected to be completed by 2029.
“We’re excited to be working alongside KRE Group on this transformative new icon for Jersey City.” – Jeff Kanne
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This will be constructed along the Magnolia Avenue entrance to the PATH and will include an open space courtyard lined with trees, greenery, and seating to encourage pedestrian activity. The plaza will also include a “kiss and ride” feature that will allow people to be dropped off. This is something that has been missing from the area for more than a decade.
Known as “J2,” the project began clearing and environmental remediation early in 2014. Even as the ground breaking took place, workers dug through Palisades bedrock in order to create the foundation for the massive towers.
Abatement key to inland development
The City Council voted last November to approve a 30-year tax abatement for the $666 million total project as well as $10 million in bonds. KRE has also agreed to pay $515,000 to the city annually over 25 years to amortize the $10 million bonds. Also as part of the agreement, KRE has agreed to donate $2.5 million to help restore the Landmark Loew’s Jersey Theatre, located nearby.
The developers have negotiated annual payments to the city in lieu of taxes, but none will be paid to Hudson County or the local school district.
This was part of a commitment by Mayor Steven Fulop to expand development deeper into the city, and he pointed out at the ground breaking that KRE Group has been instrumental in expanding development, first by taking a chance with construction of development near the Grove Street PATH station, ahead of other developers and now at the Journal Square station.
City officials said KRE estimates a total of $11.1 million in net annual income once the three towers are complete and fully rented.
Building on transportation hub
“While Journal Squared was designed to meet the ever-increasing demand for a desirable urban living experience near public transportation, the broader intent is to complement the existing mass-transportation infrastructure with new residential, retail and open space to create a well-balanced destination that become a center point for community life,” said Murray Kusher, chairman of the KRE Group.
A large percentage of the investment in the project comes from the National Real Estate Advisors, which invests pensions and other assets in large scale development and redevelopment.
“We’re excited to be working alongside KRE Group on this transformative new icon for Jersey City,” said Jeff Kanne, president and CEO of National Real Estate Advisors. “We’re also proud that this new development will generate much-needed jobs for the people of New Jersey.”
He praised the fact that union labor is being used on the project, and predicted that this project will have a similar effect for the Journal Square area as projects downtown Jersey City had in that area.
Patrick Kelleher, president of Hudson County Building Trades – a group of unions that represent various construction trades – said Jersey City leads the state in providing union jobs for construction.
“It is the economic engine of the state,” he said, crediting Mayor Fulop and his vision for the city.
The project was first conceived in 2007, but didn’t get approval from city Planning Board until 2012.
It will be constructed in an area bordered by Magnolia Way, Summit Avenue, and Pavonia Avenue. The area was until recently occupied by a number of apartment buildings, a parking lot once used for New Jersey Transit personnel, and a former office building owned by Verizon.
The project height far exceeds any building that currently exists in that part of the city. The KRE group previously built Grove Pointe, a large-scale residential development near the Grove Street PATH Station.
Al Sullivan may be reached at asullivan@hudsonreporter.com.