One of the largest redevelopment projects along the Jersey side of the Hudson River has nabbed a financing deal to start phase one as a glass-heavy Edgewater tower is moving closer to reality.
The Maxal Group recently announced they closed on a $255 million construction loan for a 25-story, 381-unit apartment tower at a long-vacant parcel at 615 River Road. The parcel, formerly home to Hess fuel tanks, was purchased by the company in 2014.
A thorough environmental remediation of the property was completed but a lengthy battle ensued over the land. The Maxal Group filed a lawsuit against Edgewater in 2017, alleging that the town and local developer Fred Daibes were conspiring to block their previous plans for a development totaling 1,800 residential units.
The case was eventually settled in 2019, and Edgewater declared the land an area in need of redevelopment in later that year. The final plan was scaled back to 1,200 residential units and approved by Edgewater in 2021.
The $255 million in financing will cover the first phase of a $1 billion mixed-use development, which includes 1,200 homes, retail space, a new ferry terminal, and public amenities spread across over 19 acres of land. S3 Capital is the lender for the loan, with Galaxy Capital brokering the transaction.
“We see immense opportunity in financing transit-oriented residential developments adjacent to major city centers,” said Steven Jemal, managing director of origination with S3 Capital. “This project’s innovative on-site ferry terminal will create lasting value for the entire Edgewater community, and we look forward to supporting The Maxal Group throughout the construction process.”
S3 noted that a new ferry terminal to be built as part of the project will provide residents with direct access to Manhattan’s West Side and Hudson Yards in under 15 minutes. Two NJ Transit bus stops are also planned for the site.
Designed by New York-based FXCollaborative, the entirety of 615 River Road will span 1.2 million square feet and feature a trio of 25-story towers. 20,000 square feet of retail space will be split between the structures and sprinkled among the 1,200 apartments will be 180 affordable housing units.
The developers will additionally be donating about eight acres to Edgewater as part of the deal, aiming to create a new school and open space. Other public amenities include a two-acre park called Edgewater Green and the extension of the Hudson River Waterfront Walkway that that will connect to the area’s existing river trails.
“We are extremely excited in working with S3 to bring another cutting-edge environment to the Hudson River waterfront,” said Bruce Sturman, The Maxal Group’s founder and managing director. “615 River will be an extraordinary living experience with stunning Manhattan and George Washington Bridge views via floor-to-ceiling glass in units that set itself apart from existing rental product in the marketplace.”
Despite the financing deal, a potential groundbreaking date or construction timeline has not been announced for the project’s first phase.
