As the state's new development incentives programs unfurl, GlobeSt.com will be focusing on the projects that will benefit and the development patterns that result. Click on “follow this story” above to be alerted to updates.
HOBOKEN, NJ-As the Economic Opportunity Act made its way through the twisty legislative route to passage, commercial real estate stakeholders spoke of the host of projects that were waiting to burst forth when it did.
The rules and regulations for the new incentives programs are not even published yet for the bill signed Sept. 18, but that pipeline is already beginning to spurt:
- Enticed by a potential $40 million tax credit, the Philadelphia-based retailer Destination Maternity announced plans to relocate its headquarters to Moorestown and to put a distribution center in Florence.
- Graced with a $23.8 million tax grant over ten years, Shaquille O'Neal and partner Boraie Development broke ground last week on the first new high-rise apartment building in Newark in 50 years.
- Saying its project could not proceed without the new incentives specifically aimed at Trenton, HHG amped up its work on the planned transformation of a vacant former steel factory into loft apartments and shops in that city.
These initial spurts could actually turn into a gusher by next year, say market experts like CBRE's Gualberto “Gil” Medina.
“Most companies had people eagerly tracking the legislation's progress - accountants, lawyers, advisors to companies, many of which were waiting until this program was launched to apply for incentives and support,” Medina says.
Brent Jenkins of LCOR, the developer of the planned 3 million square-feet, mixed-use Crossing at Hoboken Terminal here, says the EOA is going to make a huge difference in the project's appeal to large tenants.
“In our conversations with potential tenants that have very large requirements,” says Jenkins, “this definitely is coming into play in their analysis of sites.”
The EOA lifts the caps on the amount of tax credits a project can receive and provides special incentives for certain types of business and projects in transit hubs, such as the rail yards.
The rail yard project is being done in concert with NJ Transit, which will work on PATH train station improvement in the area off Observer Highway.
The development is to include four blocks of residential buildings with ground floor retail stores on the eastern end of Observer Highway. Also, at the western end of Observer Highway, four more blocks of commercial office space are planned, including a 348-foot tower above the PATH station at the Hoboken Terminal.
“The terminal is a very important, irreplaceable transit asset for state of New Jersey,” Jenkins says. “The EOA seeks incentivize transit areas because of their significance. It is important to maximize the utilization of those areas.”
With the new programs, “we will attract more businesses, because anything that helps reduce the occupant's costs is critical,” he says.
To be alerted to updates of this story, click on “follow this story” above.
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