FEATURE ARTICLE, MAY 2012

MIXED-USE PROJECT SPOTLIGHT

HARRISON PREPARES FOR APARTMENT BOOM

Ironstate Development Co. and the Pegasus Group are developing a $750 million mixed-use project in Hudson County, New Jersey.

There was a time when Harrison in Hudson County, New Jersey, was dominated by views of aging warehouses and commuter parking lots. That landscape is changing, however. The former industrial center has become a hotbed of residential development, including a $750 million, mixed-use project known as Harrison Station.

The first completed building in the project opened last September and included 275 apartment units and 12,814 square feet of retail space. By April, the apartment units were fully leased, while Five Guys Burgers & Fries; Pronto Gourmet; Pro-Cuts; and Sakara, a Japanese restaurant, have each inked leases for retail space.

“The absorption has been very consistent, which is a sign that you haven’t tapped out that demand,” says Greg Russo, a senior vice president of Ironstate Development Co., one of the site’s developers.

Ironstate and its joint venture partner, the Pegasus Group, were initially attracted to the area's transit access. The new building is just steps from the PATH station, with quick access to the New Jersey Turnpike.

The developers partnered in 2000, and after acquiring several parcels and completing environmental clean-up work on the site, they constructed a four-story parking deck before starting construction on apartments and retail space. This June, they will break ground on the project's next phase, a 136-room Element hotel, to be built around and atop the parking garage.

When completed, Harrison Station will ultimately include 2,600 residences and 80,000 square feet of retail.

The developers have noticed strong demand from those who work along the PATH line in Hoboken, Jersey City, or New York City.

Young professional singles and couples, ages 20 to 39, are the target demographic for rentals, says Jacqueline Urgo, president of the Marketing Directors, the development's exclusive leasing and marketing agent.

Urgo says many renters are attracted to living in luxury housing without the Hoboken price tags. "The well-designed homes, full suite of amenities, and supportive street-level retail complete the desirable urban lifestyle experience,” says Urgo. “It’s all at a price point that is extremely favorable when compared to areas like downtown Jersey City and Hoboken.”

Rents in the Harrison Station building average $1,450 for a studio, $1,675 for a one-bedroom unit and $2,150 for a two-bedroom unit. The development also includes a beach volleyball court and outdoor pool.

The project is also across the street from a 600-unit, mixed-use development by Heller Urban Renewal. Crews began demolition on the site last November.

The Heller development shares the same name, Harrison Station. Local developers reached an agreement to call the neighborhood Harrison Station to avoid name confusion. "Our project will be called Harrison Station 300 Somerset St.," says Russo. "The neighborhood should have a name, and we'll both build off that brand."

— Liz Burlingame

HISTORIC OCEAN LINER TO BECOME MIXED-USE ATTRACTION

The S.S. United States presents unique economic development potential.
Mark Perry Collection

The S.S. United States was the world's sleekest ocean liner, a symbol of American power and even a Cold War weapon.

In its glory days, it seemed hard to believe it would end up languishing at a dock in Philadelphia. The liner has been moored there for more than a decade and once came dangerously close to the scrap yard.

With hopes for its revival, the liner's latest owners, the non-profit S.S. United States Conservancy, is planning to redevelop the 650,000-square-foot liner into a floating hotel and tourist attraction.

The conservancy recently announced a partnership with real estate advisory firm New Canaan Advisors LLC to assist in advancing its development plans. The plan is to convert the ocean liner into a mixed-use space, with a hotel, restaurants, retail, educational and museum components.

Both New York and Miami are under consideration as the flagship's new home, and the group is currently identifying a developer.

"[The S.S. United States] is about equal to the size of the Chrysler building if you stood it on end," says Curt Battles, CEO of New Canaan, who previously worked on redevelopments at Grand Central Terminal and the World Trade Center. "If you could imagine putting that into a marketplace like a Miami or New York, it creates a unique opportunity right away."

At 990 feet long, the S.S. United States is larger than the Titanic, and was designed as both a luxury liner and top-secret Cold War weapon. While it was never pressed into battle, the ship could transport 14,000 troops for more than 10,000 miles without refueling. The big ship also set two speed records for crossing the Atlantic during its maiden voyage in 1952; one in each direction. The transatlantic speed record still stands today.

"It really was this extraordinary embodiment of the nation's post-war technological supremacy and post-war pride," says Susan Gibbs, the conservancy's executive director.

The S.S. United States continued sailing until 1969, when the rise of jet travel diminished the allure of trans-Atlantic voyages. Since then, a series of owners have bought and sold the liner. In 1984, one frustrated owner auctioned off most of its furnishings and fittings. It was later towed to the Ukraine for asbestos removal. Then, in 1994 it was towed to Philadelphia.

Last year, the conservancy purchased the ship from Norwegian Cruise Lines and its parent company for a reported $3 million.

Dan McSweeney, managing director of the conservancy, says the ship is still structurally sound and the interior could be used for a number of uses. "Because the ship was stripped out, we basically have a blank slate. The developer can certainly refer to the past in his or her redevelopment but could also create something that's new and forward thinking."

A big component of the project will be a museum. "We are in the process of surveying individuals and institutions around the world as to their current holdings of artwork, interior fixtures and everything that helps tell the story of the vessel," says Gibbs. "We've also been collecting oral histories and testimonials as more than 1 million people travelled aboard the vessel during her service career."

The conservancy and New Canaan anticipate the project could cost about $300 million, which will come from for-profit entities. McSweeney says the group aims to select a developer by the end of 2012.

— Liz Burlingame


©2012 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.




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