JERSEY CITY, N.J., April 15, 2016 /PRNewswire-iReach/ -- More than 350 senior-level executives and decision makers from the region's most active commercial real estate development, investment and brokerage firms attended The Fourth Annual New Jersey Gold Coast Summit, the latest installment in The NJ Commercial Real Estate Series. The summit was held on March 17 at Maritime Parc, a private meeting and event venue, in Liberty State Park.
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The summit commenced with a new development case study, How Green Design and a Modern/Luxury Tenant Base Take Shape at Intercontinental Real Estate Corporation and Bijou Properties "Vine" in Hoboken. The case study brought special focus to The Vine, a new 11 story, 135-unit mixed-use asset in Hoboken.
Jeffrey Dunne, Vice Chairman of Investment Properties, CBRE; Michael Keyes, Partner, Director of Acquisitions, Intercontinental Real Estate Corporation; and David Gaber, Partner & CFO, Bijou Properties were on hand to provide insight and answer questions from attendees. Jeffrey Dunne moderated the panel. Dunne, Keyes and Gaber discussed The Vine's innovative features: a green roof, a co-generation system and backup generator, how the project brings together for-rent multifamily and retail in one of the Gold Coast's highest income submarkets. In addition, the case study speakers covered the types of retail in demand for modern multifamily buildings, as well as the types of tenants, their incomes and rental rates.
The Vine project has been developed in accordance with the U.S. Green Building Council's (USGBC) standards for LEED® certification and will be the fourth LEED-certified building introduced by Bijou Properties in the Hoboken. The Vine also considers retail performance in addition to its residential play.
Michael Keyes of Intercontinental Real Estate Corporation began the case study explaining why Intercontinental was bullish on investing in New Jersey. Keyes spoke about many of the projects Intercontinental has invested in and around Hoboken, but said he kept hearing from prospective tenants and retail partners that the focus of activities and lifestyle should be centered around Hoboken proper. Notwithstanding the barriers to entry like permitting, Keyes fortunately "happened upon" Bijou Properties who "had a shovel-ready project" which ultimately became the Vine.
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David Gaber of Bijou Properties explained that his firm has been active in Hoboken since 1999, and is one of the most active developers. "All of our projects have some sort of community benefit," explained Gaber. "We have never been denied a use variance in 15 years."
By providing schools and parks, Bijou considers community important in new development, as well as green initiatives. The Vine features a 11,500 sq ft day-care center as well as a 7000 sq ft park.
Mr. Gaber addressed the transportation benefits of Hoboken as they relate to the Vine project. Gaber said Bijou was attracted to this particular tract of land due to its proximity to the light rail stations and direct roadways streaming in and out of Hoboken. "Our tenants mostly work in New York City, and getting there efficiently is important."
When speaking about the green initiatives, it's not all about sales and promotion, rather it is a long-term benefit. "Green roofs are very important to Hoboken," according to Gaber. By designing the Vine with a green roof and micro-turbine, he said the building will stay cooler in the summer, and warmer in the winter. The micro-turbine uses natural gas and is used as auxiliary heating for the swimming pools and the domestic hot water, saving energy. "Our building uses 25% less energy than a normal building," explained Gaber. "This is huge saving for the tenants who will see a 50% cost savings in utility bills per month."
Mr. Keyes agreed and pointed out that the green initiatives help pushing rental rates, absorption, while creating a more attractive tenant profile when prospective renters are evaluating properties. Many of these initiatives also make the asset more durable over time despite the cost and budget barriers in initial construction.
"50% of our tenants are young families with children" said Gaber. Those particular tenant demographics seek toxin-free, green buildings which make them more comfortable and promote peace-of-mind. This really differentiates us from all the other mixed-use assets in the area," said Gaber.
Gaber also addressed parking, which can be an issue in Hoboken, and explained that 75% of all the renters are working in New York City proper. However, according to Gaber, public transportation and services such as Uber decrease the demand for car ownership, which translates into less need for in-house parking. He added that unused space in the parking facility is generally filled by non-tenants. Keyes noted that couples and roommates will become more important in future projects.
When it comes to retail, Gaber explained that any retail partner had to add a direct benefit to the community and fill a need. "The tremendous need for day care was one of those benefits that ultimately created the deal," said Gaber. "We get many proposals for retail in our buildings, but are very selective and day care just made sense given the lack of options in the area already.
Gaber added "Bijou is not going to rent out space to anyone, we want to make sure it's the right fit for the area."
Intercontental's Keyes spoke about construction cycles, timeframes and the impact green building and LEED will have on deadlines. "Twenty months was the goal for the project," said Keyes. "The Bijou folks did a great job following that timeframe."
The Fourth Annual New Jersey Gold Coast & Spring Multifamily Summit was a highly-interactive and informative full-day conference. 40 speakers, representing the region's developers, investors and public sector participated in 12 panel discussion and innovative case studies.
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