May, 02, 2008

Development that's remaking pockets of New Jersey's Hudson County has taken hold in West New York.

But the revamping of the mostly immigrant, working-class community is following two tracks: higher-end projects for the waterfront area, which has been revitalized by the Port Imperial project, and smaller projects along interior streets that still retain a blue-collar feel.

But both these high-end and more modest visions are getting clouded by the national economic slowdown. Sales of new construction have trailed off throughout the town of 46,000, and brokers report declining prices at smaller projects.

Prior to the economic crisis, new construction was already less expensive than other northern Hudson County hotspots. Expanded transportation options drew buyers to West New York. The 2005 expansion of the Hudson-Bergen Light Rail into the town, prompted in part by Port Imperial's development, helped spur other development in the area. The light rail connection means the PATH stations in Jersey City and Hoboken are 15 minutes away. There is also a ferry from Port Imperial and commuter buses that access Manhattan.

Buyers "are willing to sacrifice [the amenities and proximity to Manhattan of] Hoboken or downtown Jersey City," Len Turi, a broker with Century 21 Turi Realty in West New York, said. "With the light rail, they can get to the PATH or the ferry."

Elayna Center, a sales agent with Remax Villa in West New York, said many more affluent New Yorkers have turned to West New York. They've also headed to other northern Hudson communities, including Guttenberg and Weehawken, in search of more space at prices lower than Manhattan. Many of Center's clients looked in Jersey City and Hoboken before casting their eyes farther north.

"It's gotten very expensive in Hoboken and Jersey City," Center said.

The jewel of new development is Roseland Property Company's Port Imperial project, a two-mile-long planned community along the Hudson River that spans the three adjacent waterfront communities of West New York, Guttenberg and Weehawken. The developer has built 6,000 townhouses, condos and apartments, and new properties are still coming online. Henley on Hudson, a new project next to the Port Imperial Ferry Terminal in Weehawken, is opening for occupancy within months, with multimillion-dollar townhomes and condos under contract.

The Port Imperial development has brought new retailers to the area. Center said River Road, which runs through Weehawken, West New York and Guttenberg, has gained new shops and restaurants like Whole Foods and Starbucks.

The interior portions of West New York, though, are served by Bergenline Avenue, a retail strip that feels largely untouched by development. The street is a mix of mom-and-pop stores, ethnic restaurants, 99-cent stores and fast-food franchises, and there is not a Starbucks in sight for a population where 80 percent of people rent and earn an average household income of $34,000.

Turi said many of the lower-priced condo units in West New York start at $200,000 for a one-bedroom. Newer construction, especially in Port Imperial, can push prices up to the $600,000 range for a larger apartment without a view, and more for a better view of the city. Center noted many clients are willing to pay in the high six figures for city views.

In comparison, new construction in Hoboken runs somewhat higher. The 113-unit, 10-story Metro Stop by Metro Homes, at Ninth and Jackson streets, right by a light rail stop, has one-bedrooms with 786 square feet starting at $400,000; two-bedroom with two baths start at $600,000.

The housing stock in the other, interior section of West New York is mostly single or two-family homes with a handful of towers, some on John F. Kennedy Boulevard East, or Boulevard East, as the locals call it, some of which have been renovated recently. Many have striking views of Manhattan across the Hudson River.

Away from the waterfront, Turi said West New York's new development projects are typically smaller-scale buildings by local developers who have purchased a few houses to assemble parcels of land. These are mostly multi-unit developments and don't have the pools or doormen of their riverfront counterparts, though they can have upscale finishes in the units.

While new construction offers more upscale inventory, "this is a blue-collar town," Turi said.

Marie Episale, a sales agent with Century 21 Crest in Pompton Plains, is representing new smaller-scale condo development in the interior section of West New York. One project is a 60-unit development by Capodagli Properties, a block off the main drag, Bergenline Avenue, and four blocks from the waterfront.

The Capodagli project has set aside 20 units for senior citizens. The project's units start in the $200,000 range with amenities such as modern kitchens, hardwood floors and large closets.

Episale noted that Capodagli is currently planning another condo development in West New York, featuring over 100 units, a few blocks from Bergenline Avenue. The buyers are mainly New York commuters who may be priced out of Port Imperial.

"In Port Imperial, it is more expensive," Episale said. "But some of the people buying in the interior want the sense of community. They want to walk to the store. When you are at Port Imperial, you have to drive to it."

But the economic slowdown is taking its toll on West New York. Episale said that while the Capodagli condos were priced in line with the area, the prices have dropped a bit recently. Center noted that Port Imperial will most likely see a drop in sales volume, along with the rest of the Gold Coast communities, as many of the buyers come from the hard-hit financial sector.

"You have the Bear Stearns [collapse], and that will have thousands of people out of work," Center said. "Everyone is putting a hold on buying."

Author: John Celock