JLL Capital Markets advises Lions Group on $200 million full-stack structured capitalization for Homestead Gateway

Jersey City, NJ JLL Capital Markets announced today that it has advised on the roughly $200 million structured capitalization and forward Freddie Mac commitment for Lions Group’s Homestead Gateway, a 34-story mixed-income residential tower that will deliver the first affordable housing units to Jersey City’s Journal Square neighborhood in years.

The Urban Investment Group at Goldman Sachs Alternatives provided a bespoke, multi-tranched capital solution of nearly $200 million to the project, including a construction loan, bridge facility, LIHTC equity and Aspire tax credit purchase. The financing package also includes a forward Freddie Mac commitment arranged by JLL Real Estate Capital, LLC. Located at 701 Newark Ave., the 360-unit development will transform a former municipal parking lot into a modern residential community featuring 90 affordable housing units alongside market-rate apartments.

Homestead Gateway addresses critical housing needs while advancing broader community goals through innovative design and strategic partnerships. The development will allocate one-third of its site to publicly accessible open space, creating a pedestrian "Gateway" that connects residents and visitors directly to Homestead Place Plaza and improves access to the Journal Square PATH Station. This infrastructure investment directly supports the Journal Square 2060 Plan's vision for enhanced walkability and transit-oriented development.

The project represents a significant workforce development initiative, utilizing 100% union labor under a Project Labor Agreement with Hudson County Building Trades and committing to permanent union operations through an agreement with 32BJ SEIU. Ground-breaking is set for early December 2025.

Beyond housing, Homestead Gateway will contribute to neighborhood economic vitality through nearly 3,000 s/f of ground-floor retail space and premium amenities including a rooftop lounge, fitness center, bicycle storage and shared workspaces. The development's location three blocks from the Journal Square Transportation Center provides residents with convenient access to New York City's Penn Station (33 minutes), World Trade Center (20 minutes) and Newark Penn Station (20 minutes).

The transaction exemplifies successful public-private collaboration, made possible through years of coordination between the New Jersey Economic Development Authority (NJEDA) and New Jersey Housing and Mortgage Finance Agency (NJHMFA). NJEDA's Aspire Program, enacted in 2021 to catalyze economic growth benefiting workers, low-income residents and local neighborhoods, provides crucial project support.

“It is extremely rare to see a new development bring so much to the table in terms of affordable housing, union jobs and community benefits,” said Aaron Shirian, principal at Lions Group. “The City of Jersey City has proven itself to be a national leader in strategic housing development, not only by attracting investment in the multitude of projects we have seen over the last decade, but also by ensuring that those investments go toward thoughtfully planned projects that will provide benefits to the entire community. We are also very thankful to the State of New Jersey, particularly the New Jersey Housing Mortgage Finance Agency and the New Jersey Economic Development Authority, who put in many years of hard work to make this project a reality. We are honored to be a part of it, and we hope to see many more projects like this in the future.”

"Mixed-income developments like Homestead Gateway demonstrate how thoughtful housing solutions bring together families across income levels to create stronger, more prosperous communities," said Asahi Pompey, chair of the Urban Investment Group at Goldman Sachs Alternatives. "This innovative approach doesn't just help address the affordable housing crisis. It drives economic growth, brings neighborhoods together and delivers tangible benefits for families in Jersey City.”

The JLL Capital Markets Advisory team representing Lions Group included Nicco Lupo, Christopher Peck, Michael Shmuely, Jillian Grzywacz, Alex Staikos, Jimmy Cochran and Tom Didio Jr.

“Homestead Gateway embodies what thoughtful public-private collaboration can achieve, creating housing that serves multiple income levels, infrastructure that reconnects a neighborhood and investment that supports long-term community and economic vitality,” said Lupo. “Lions Group’s vision, the State’s leadership and Goldman’s highly tailored capital stack combined to deliver a solution that is both financially sophisticated and socially meaningful.”