iStar’s next phase in Asbury Park promises (another) $300M investment

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Asbury Park has changed a great deal in the past 10 years, and a lot of that is due to iStar. From the swanky The Asbury hotel to the revamping of the Asbury Lanes and the redevelopment of the Asbury Ocean Club Surfside Resort and Residences, iStar’s mark on the city is undeniable. But the work isn’t done.

On March 24, iStar announced it is teaming up with developers Toll Brothers, K. Hovnanian and Somerset Development for a new phase of projects along the shore forecasted at $300 million. That’s on top of the $300 million the master developer says it has already spent in Asbury Park to transform a 1.25-mile stretch of oceanfront in the city.

According to iStar, together the three developments will create $3.6 million of new tax revenue — equivalent to approximately 15% of the total municipal share collected by the entire city last year. And the company said it will also contribute $1.9 million of annual special assessment payments to fund new public infrastructure in the waterfront development area.

That focus on overhauling the infrastructure in the city isn’t new for iStar. The company said it previously spearheaded an $8 million extension of the boardwalk and new landscaping, sidewalks, street lighting and added parking on the oceanfront.

“We have always believed in the City of Asbury Park,” said iStar Senior Vice President Brian Cheripka, who leads all land and development in Asbury Park on behalf of the company, in a statement. “Our first several projects showcased a new standard for the oceanfront, curated exceptional experiences, and introduced an effortless lifestyle for new residents. With the oceanfront now providing a solid, and growing, economic foundation for the City, we feel comfortable accelerating our efforts to complete the redevelopment by bringing in best in class development partners who share our vision.”

Building up

Toll Brothers will bring a luxury townhome community to the area along Wesley Lake, to be located at 407 Lake Ave. — its first in Asbury Park. The project, which is still in its early planning stages, will consist of five buildings with a total of 62 residences, ranging from two to four bedrooms, iStar said. And according to a statement from Toll Brothers New Jersey Division President Craig Cherry, “[o]ur discerning home buyers can trust our commitment to an extraordinary experience, from floor plans designed for today’s buyers and unrivaled personalization options through our national award-winning Design Studio, we continue to offer our residents the best in luxury living in the most desirable New Jersey neighborhoods.”

At 320 Asbury Ave., K. Hovnanian is developing The Cove at Asbury Park. The community, with its 48 townhomes, opened last summer and is already sold out, iStar said.

“Our buyers have shared that our prime location between the beach and Cookman Avenue helped make their decision to move to Asbury Park an easy one,” said K. Hovnanian Homes Northeast Division President Michael Weisslitz. “Our location which is a short walk to the water, with modern design and tasteful interior selections, makes our large homes a preferred alternative to a similar sized single-family home without the maintenance.”

Meanwhile, Somerset Development — the team behind Holmdel’s metroburb BellWorks — is expanding its residential portfolio with its entrance to Asbury Park, iStar said.

“The Asbury Park waterfront represents one of the Jersey Shore’s best-loved destinations and is increasingly becoming known as more than just a beautiful place to visit and vacation, but also to call home,” said Somerset Development President Ralph Zucker. “We’re thrilled to partner with iStar and leverage our commitment to creating thoughtfully designed, leading-edge spaces, to bring a beautiful new luxury residential community to Asbury Park. Our shared vision for what is already a truly vibrant, dynamic neighborhood will provide a place for future residents to enjoy what Asbury Park has to offer.”

That project is located along 5th Avenue, the same as Wonder Bar.

According to iStar, through collaboration with Asbury Park officials and local businesses, the city has seen a 300% increase in tourism since 2010.