Why Jared Kushner Is Betting on Jersey City

Jared Kushner
Bisnow Archives

When young adults need parents to co-sign for an apartment even in Brooklyn, NYC residential rents give Kushner Cos prez Jared Kushner pause. That’s why he’s betting big on Jersey City with 4M SF of projects, including 447 apartments at 65 Bay St. Residential rents Downtown, where 100,000 jobs are going to the WTC, run $60 to $85/SF, he says. But across the Hudson, Jared can build brand-new apartments and charge more affordable $38/SF rents. Another good market, he says, is Astoria, where priced-out East Village residents are migrating.

It’s hard to make money on office, Jared told the crowd before we snapped him at an AREW lunch at Club 101 on Tuesday. The only way is to achieve growth in rental rate rates, but you can’t underwrite 10% growth. Sometimes, everything works out, though. His company acquired the 465k SF 2 Rector St (above) last year as a residential conversion play. Now, though, the resurging office market Downtown has him considering to keep it as office.

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