The deal provided HBC with capital for a Jersey City project, Homestake said.
“Three years ago, we wanted to venture into the improving Jersey City market,” Michael J. Kokes, managing principal of Homestake, said. “After extensive due diligence, we were given the opportunity to partner with Hoboken Brownstone Company to source a parcel located on 8th Street in Jersey City. At the time, the site was on the fringe of development. We worked with HBC to secure entitlements for a five-unit brownstone condominium building.”
“Homestake is not your typical investment firm and Michael is not your typical investor,” George Vallone, president of HBC, said. “Michael grew up in the building industry and really takes the time to examine every aspect of the project. I call him an ‘investor plus plus’. You get the advantage of having his capital, but also his experience and market knowledge.”
HBC and Homestake jointly obtained all building and environmental approvals to build a five-story brownstone in Jersey City.
“We got everything shovel ready, then we sold it to another developer based on various market conditions,” Vallone said. “Michael’s flexibility and entrepreneurism allowed us to alter our original plan, which ultimately provided us a great result.”
The project took two years to flip, Vallone said.
“Throughout the process, Homestake went through all of the assumptions and provided input on each one,” Vallone continued. “We did everything but build and sell. It was extremely successful for all parties involved.”