JLL Capital Markets recently said that it has advised on the roughly $200 million structured capitalization and forward Freddie Mac commitment for Lions Group’s Homestead Gateway, a 34-story mixed-income residential tower that will provide affordable housing units to Jersey City’s Journal Square neighborhood.
The Urban Investment Group at Goldman Sachs Alternatives provided a multi-tranched capital solution of nearly $200 million to the project, including a construction loan, bridge facility, LIHTC equity and Aspire tax credit purchase. The financing package also includes a forward Freddie Mac commitment arranged by JLL Real Estate Capital LLC.
Located at 701 Newark Ave., the 360-unit development will transform a former municipal parking lot into a residential community featuring 90 affordable housing units alongside market-rate apartments.
Homestead Gateway addresses critical housing needs while advancing broader community goals through design and strategic partnerships. The development will allocate one-third of its site to publicly accessible open space, creating a pedestrian “Gateway” that connects residents and visitors directly to Homestead Place Plaza and improves access to the Journal Square PATH Station. This infrastructure investment directly supports the Journal Square 2060 Plan’s vision for enhanced walkability and transit-oriented development.
The project utilizes union labor under a Project Labor Agreement with Hudson County Building Trades and commits to permanent union operations through an agreement with 32BJ SEIU. Ground-breaking is set for early December 2025.
Homestead Gateway is scheduled to provide nearly 3,000 square feet of ground-floor retail space and premium amenities including a rooftop lounge, fitness center, bicycle storage and shared workspaces. The development’s location three blocks from Journal Square provides access to New York City’s Penn Station, World Trade Center and Newark Penn Station.
The transaction was made possible through coordination between the New Jersey Economic Development Authority (NJEDA) and New Jersey Housing and Mortgage Finance Agency (NJHMFA). NJEDA’s Aspire Program, enacted in 2021 to catalyze economic growth benefiting workers, low-income residents and local neighborhoods, provides project support.
“It is extremely rare to see a new development bring so much to the table in terms of affordable housing, union jobs and community benefits,” said Aaron Shirian, principal at Lions Group. “The City of Jersey City has proven itself to be a national leader in strategic housing development, not only by attracting investment in the multitude of projects we have seen over the last decade, but also by ensuring that those investments go toward thoughtfully planned projects that will provide benefits to the entire community.”
The JLL Capital Markets Advisory team representing Lions Group included Nicco Lupo, Christopher Peck, Michael Shmuely, Jillian Grzywacz, Alex Staikos, Jimmy Cochran and Tom Didio Jr.
