Panepinto and AJD secure $384m for Harborside 8 as Jersey City waterfront pushes into next growth cycle

JLL has arranged $384 million in construction capital for Harborside 8, a 678-unit luxury high-rise by Panepinto Properties and AJD Construction, reinforcing investor confidence in Jersey City’s rental housing demand amid continued urban waterfront redevelopment.

Why does a $384 million financing deal for Harborside 8 matter for Jersey City’s housing pipeline?

The $306 million in senior non-recourse financing provided by Kennedy Wilson, paired with $78 million in preferred equity from Affinius Capital, reflects sustained institutional interest in Jersey City’s luxury rental segment. The financing package, arranged by Jones Lang LaSalle Incorporated’s Capital Markets group, will support the land acquisition and vertical construction of Harborside 8—a 65-story residential tower featuring 678 apartments and nearly 9,000 square feet of retail.

Strategically located along the Hudson River at 242 Hudson Street, the tower sits in the East-Waterfront district of the Harsimus Cove Station Redevelopment Area. The site’s proximity to Manhattan—via the Exchange Place PATH station and the Paulus Hook Ferry—continues to make it an attractive prospect for developers targeting affluent urban renters. The broader context is a post-pandemic urban resurgence in select coastal cities, where Class A rental absorption remains strong despite macroeconomic tightening.

The announcement signals that high-density, luxury-oriented multifamily construction remains viable in mature Northeast markets when paired with seasoned developers and premium locations. It also underscores the importance of bespoke capital structuring in large-scale residential development amid an environment of higher interest rates and selective credit underwriting.

What signals does this send about institutional appetite for urban rental projects in 2026?

The transaction suggests that the narrative of “urban flight” has long reversed in tier-one commuter markets with direct transit access. Jersey City, once seen as an affordable alternative to Manhattan, has evolved into a prime investment zone in its own right, especially along the waterfront.

Kennedy Wilson’s involvement is notable. The firm is known for targeting high-growth geographies across the United States, but this transaction illustrates a willingness to participate in supply-side growth in dense urban areas where demand drivers remain intact. By committing senior floating-rate debt, Kennedy Wilson signals conviction not only in the underlying project but in the continued rent trajectory and absorption outlook for luxury apartments in this corridor.

Affinius Capital’s preferred equity stake further signals an appetite for structured investments tied to experienced sponsors and value-rich submarkets. Affinius and Kennedy Wilson are not speculative players. Their participation reinforces the institutional case for Jersey City as a durable, yield-generating rental market that can withstand short-term macro shocks.

How do Panepinto and AJD position themselves within the Jersey City development ecosystem?

Both Panepinto Properties and AJD Construction have long-standing track records in Hudson County real estate. Panepinto, which has operated in the region since 1977, played a catalytic role in shaping the Jersey City skyline through projects like Harborside Plaza 10. AJD, meanwhile, has built over 60,000 residential units with a total portfolio value exceeding $20 billion, bringing vertical integration and construction velocity to complex projects.

What sets this partnership apart is its familiarity with local regulatory pathways, neighborhood sensitivities, and development phasing. Their prior involvement in nearby waterfront projects offers them a procedural advantage in navigating Jersey City’s planning and permitting environment, particularly in the designated redevelopment zones that encourage high-density, mixed-use projects.

Harborside 8 is a continuation—not a departure—of their long-standing urban infill strategy. Joseph Panepinto Sr. described the project as a “full-circle moment,” linking the 1996 acquisition of Harborside Plaza 10 with this new phase of vertical expansion. That legacy lends the project both credibility and momentum.

What are the project’s key features and timeline—and what risks remain?

The Harborside 8 tower will encompass 719,726 square feet of rentable space across a mix of studios, one-bedroom, two-bedroom, and three-bedroom apartments. In addition to residential units, the project will include 8,578 square feet of retail, a 40,000 square foot public waterfront park, 350 parking spots with EV chargers, and more than 20,000 square feet of indoor amenities such as an indoor pool, co-working areas, a wine bar, and rooftop terraces.

Construction is expected to begin in Q1 2026 with stabilization targeted for Q1 2030. That six-year development horizon reflects the scale and complexity of the undertaking and leaves the project exposed to potential market cyclicality, rising input costs, and permitting-related delays.

Among the key execution risks: rental market overhang from competing developments, labor and materials inflation, and evolving interest rate environments which could impact investor return assumptions. Nonetheless, the non-recourse nature of the senior loan offers protection for the sponsors, while the floating-rate structure allows some flexibility in navigating rate shifts.

Jersey City’s rent growth has remained resilient, but future performance will hinge on absorption rates and continued inflows of high-income renters seeking amenity-rich, transit-accessible urban housing.

How does Harborside 8 align with wider urban redevelopment and housing trends?

The project sits within one of the most celebrated waterfront revitalization narratives in U.S. urban planning. Over the last two decades, Jersey City’s waterfront has been transformed from a post-industrial stretch of rail yards and warehouses into a vertical neighborhood of glass towers, walkable parks, and retail corridors.

Harborside 8 fits into the broader East-Waterfront vision, where zoning encourages high-rise, high-density projects with mixed-use characteristics. The inclusion of public green space and ground-floor retail suggests alignment with both city planning goals and ESG-minded investment mandates.

At a time when housing affordability and urban density are politically sensitive issues, projects like Harborside 8 walk a fine line. While they address housing demand, they are not aimed at middle-income renters. However, their existence can relieve pressure on broader rental markets by increasing overall supply—particularly when paired with zoning that encourages diversity of unit size and price point across the district.

In this way, Harborside 8 is as much a symbol of capital’s confidence in urban luxury housing as it is a potential contributor to the region’s overall housing equation.

What are the key takeaways for developers, investors, and urban planning stakeholders?

• JLL arranged a $384 million capitalization package for Harborside 8, with Kennedy Wilson providing $306 million in senior debt and Affinius Capital $78 million in preferred equity.
• The project is a 65-story, 678-unit luxury residential tower on Jersey City’s Hudson River waterfront, with construction beginning in Q1 2026 and completion targeted for 2030.
• The financing underscores institutional confidence in Jersey City’s high-end rental market, where demand continues to outpace new supply.
• Panepinto Properties and AJD Construction leverage their decades-long presence and local execution expertise to move Harborside 8 forward.
• The inclusion of amenities, EV infrastructure, and waterfront public space aligns the development with modern urban design principles and ESG investment themes.
• Execution risks remain tied to construction costs, rental absorption rates, and macroeconomic shifts over a six-year timeline.
• The transaction reflects a broader trend of capital favoring proven developers in established urban submarkets with strong fundamentals.
• Harborside 8 reinforces Jersey City’s position as one of the most resilient and desirable rental markets on the U.S. East Coast.