An unofficial landmark near the Lincoln Tunnel looks poised to meet the wrecking ball to make way for one of the largest infrastructure projects in the region.
Earlier this month, fencing went up around the home of Dykes Lumber Yard at 1899 Park Avenue in Weehawken. Situated near the Hoboken border, the 2.4-acre plot has seen several developments pop up around it during recent years including Hamilton Cove and Hoboken Point.
The property is also not far from the Weehawken Whole Foods, sits next to Lincoln Harbor, and is adjacent to the Rebuild By Design park and greenspace currently under construction. That reality makes the parcel pretty prime property, but a legal settlement from last year has turned it over to that nation’s biggest rail operator.
Amtrak is currently working on the Hudson Tunnel project, which broke ground with much fanfare in 2023. The $16 billion endeavor is part of the larger Gateway Project that will both rehabilitate bridges and tunnels along the Northeast Corridor branch while also building two new rail tunnels underneath the palisades for rail carriers.
According to a statement from the Florham Park-based law firm Carlin Ward Ash & Heiart, Amtrak closed on the 1899 Park Avenue parcel in July last year. The rail carrier purchased the land for $60 million following eminent domain proceedings where they initially offered $14.8 million for the property.
With the support of professional planners from Phillips Preiss Grygiel Leheny and Hughes and appraiser Paul Beisser of Integra Realty Resources, the Dykes Lumber team presented a valuation concept in court based on a multi-family development potential at the property that would include 550 units. The team told the court during proceedings that there is no doubt that 2.4 acres on the Weehawken waterfront would sell in the open market for residential development.
“With the support of our experts, we were able to show Amtrak the realistic development yield of the property and a value based on market evidence of value,” said Michael Ash of Carlin Ward Ash & Heiart. “We convinced Amtrak that if they filed the eminent domain complaint it would result in wasteful protracted litigation that would cost the Gateway Project critical time.”
Amtrak eventually worked toward a sale in lieu of condemnation following the arguments in court. Dykes stayed open at the property through March 1 of this year under the sale agreement.
Little is known of what will become of the surface area at the Dykes Lumber plot, as the Gateway Tunnel project will presumably be buried well below the property’s surface. Clarity on the matter is quite a few years away; the entirety of the Gateway Tunnel isn’t expected to be completed before 2035.
