The condo boom that swept over the city and settled across the Hudson (it managed to survive fording the river, unlike so many cattle in "Oregon Trail") is now looking like a condo bust, at least in Jersey City. Not too long ago, blog The Life Vicarious wrote that the waterfront Trump Plaza Jersey City (name licesned by The Donald, 'natch) was delaying the start of construction on its second tower. If fact, TLV wrote, "The Trump building is looking more and more like a headstone for Jersey City's highrise boom." Today the Post provides an update on the Jersey City market, and while the paper isn't ready to bury the whole town quite yet, there are some troubling tidbits. First, on Trump:
The 440-unit building (plans for a second 417-unit tower are on hold) has sold 375 apartments since going to market at the end of 2006. With the market slowing, however, the building is offering concessions like six months of free parking, although Geibel says he has yet to resort to price cuts (currently, one-bedrooms start at $495,000, two-bedrooms at $799,000 and three-bedrooms at $899,000). But Jersey City's dependence on Wall Streeters and foreign buyers isn't hurting just the Trump building, of course:
Sales are similarly slow at developer K. Hovnanian's 77 Hudson, which, with prices averaging around $850 per square foot, is one of Jersey City's priciest buildings. On sale since July 2007, apartments in the 420-unit building are only 30 percent sold. Tom Graham, the building's senior community director, says that K. Hovnanian is covering transfer taxes and other closing costs in an effort to lure buyers to the building.Will things get worse in Jersey City before they get better? Well, if the empty lot that was supposed to be Trump Jersey City II becomes a huge Tent City, do let us know.
· Up Against the Wall [NYP]
· Trump Plaza Jersey City [njtrump.com]
· 77 Hudson [77hudson.com]