Listen to this articleJLL Capital Markets advised on the full-stack structured capitalization and forward Freddie Mac commitment totaling more than $200 million for high-rise project Homestead Gateway, which will bring dozens of affordable housing units to Journal Square in Jersey City.
JLL announced the financing for the Lions Group development Nov. 26. Coming to 71 Newark Ave., the 34-story mixed-income residential tower will feature 360 units total. The building will also bring 3,000 square feet of ground-level retail space.
The Urban Investment Group at Goldman Sachs Alternatives provided a bespoke, multi-tranched capital solution of nearly $240 million to the project. According to JLL, the package includes a construction loan, bridge facility, Low Income Housing Tax Credits equity and Aspire tax credit purchase. The financing also includes a forward Freddie Mac commitment for the tax-exempt and taxable permanent loans arranged by JLL Real Estate Capital LLC.
The work will transform a former municipal parking lot into a residential community with 90 affordable housing units. Groundbreaking is set for early December 2025.
Located three blocks from Journal Square Transportation Center, the transit-oriented development will offer access to New York Penn Station, World Trade Center and Newark Penn Station. Homestead Gateway will also feature premium amenities, such as a:
- Rooftop lounge
- Fitness center
- Bicycle storage
- Shared workspaces
Strategic planning
The project marks a public-private collaboration between New Jersey Economic Development Authority and New Jersey Housing and Mortgage Finance Agency. JLL said public subsidy contributions include:
- Aspire Program tax credits;
- Tax-exempt bonds issued by NJHMFA; and
- An allocation of 4% LIHTCs.
The announcement described the Aspire incentives as “crucial project support.” In September, NJEDA approved up to 60% of total project costs for Homestead Gateway not to exceed $89.96 million.
“The City of Jersey City has proven itself to be a national leader in strategic housing development, not only by attracting investment in the multitude of projects we have seen over the last decade, but also by ensuring that those investments go toward thoughtfully planned projects that will provide benefits to the entire community,” said Aaron Shirian, principal at Lions Group.
JLL said the work will employ 100% union labor under a Project Labor Agreement with Hudson County Building Trades along with committing to permanent union operations through an agreement with 32BJ SEIU.
The JLL Capital Markets Advisory team representing Lions Group included Senior Directors Nicco Lupo and Jillian Grzywacz, Senior Managing Director Christopher Peck, Managing Directors Michael Shmuely and Tom Didio Jr., Director Alex Staikos and Vice President Jimmy Cochran.
“Homestead Gateway embodies what thoughtful public-private collaboration can achieve, creating housing that serves multiple income levels, infrastructure that reconnects a neighborhood, and investment that supports long-term community and economic vitality,” said Lupo.
