JLL arranges $384M capitalization for Panepinto Properties & AJD Construction's newest waterfront multi-housing development

Rhea-AI Summary

Panepinto Properties & AJD Construction (KW) secured a $384M capitalization package for Harborside 8 in Jersey City: $306M senior non-recourse floating-rate construction financing and $78M preferred equity. Harborside 8 is planned as a 65-story, 678-unit waterfront tower with 719,726 rentable square feet, >20,000 sq ft of amenity space, 8,578 sq ft of retail, 350 parking spaces and a 40,000 sq ft waterfront park.

Groundbreaking is planned for Q1 2026 with stabilization anticipated in Q1 2030. Kennedy Wilson provided the senior loan and Affinius Capital arranged the preferred equity; JLL represented the borrowers.

Positive

• $384M total capitalization for land and construction
• $306M senior non-recourse construction loan secured
• $78M preferred equity committed for project funding
• 678 units across 719,726 rentable square feet (65 stories)
• Groundbreaking planned Q1 2026 with stabilization by Q1 2030

Negative

• Senior loan is floating-rate, creating interest-rate exposure during construction
• Estimated ~4-year development-to-stabilization horizon increases construction and market risk

Harborside 8, a luxury high rise in Jersey City, lands $306M senior non-recourse financing and $78M preferred equity investment

MORRISTOWN, N.J., Dec. 16, 2025 /PRNewswire/ -- JLL's Capital Markets group announced today that it has secured $306 million in senior non-recourse construction financing and $78 million in preferred equity for the land purchase and vertical construction of Harborside 8, a 678-unit, luxury waterfront multi-housing development along the Hudson River Waterfront in Jersey City, New Jersey.

JLL represented the borrowers, Panepinto Properties and AJD Construction, in securing the floating-rate senior loan through Kennedy Wilson. JLL also arranged the preferred equity through Affinius Capital.

Harborside 8, located at 242 Hudson St. in Jersey City's waterfront neighborhood, offers unparalleled access to Manhattan with a five-minute walk to the Exchange Place PATH station and Paulus Hook Ferry providing direct transportation across the Hudson River. The property sits in the East-Waterfront district of the Harsimus Cove Station Redevelopment Area, which promotes high-density development to create walkable, mixed-use neighborhoods.

Jersey City's waterfront has experienced tremendous redevelopment over the past two decades, transforming abandoned rail yards and industrial buildings into luxurious residential towers and mixed-use projects. The area represents one of the largest and most successful waterfront redevelopment stories in the United States, offering residents exceptional value and convenient commuting flows into Manhattan.

The planned 65-story residential tower will feature 719,726 square feet of rentable space across 678 units, including studios, one-, two- and three-bedroom apartments. The development will also include 8,578 square feet of ground-floor retail space and 350 parking spaces that will include EV charging stations, and a 40,000 square foot redesigned waterfront public park.

The luxury apartment community will offer extensive amenities across more than 20,000 square feet of amenity space, including a fitness center, indoor swimming pool, yoga studio, golf simulator, rooftop terraces, co-working rooms and a wine bar. Residents will enjoy breathtaking views of New York City, the Hudson River and the Statue of Liberty.

JLL Capital Market's team representing the borrower was led by Senior Managing Director Thomas Didio, Managing Director Thomas E. Didio Jr., Senior Director Ryan Robertson, Director Gerard Quinn and Associate John Cumming.

"This financing sends a clear message: Jersey City's waterfront remains one of the strongest, most sought-after rental markets in the country. In the face of continued new supply, demand here continues to outpace delivery, driving exceptional rent growth to best-in-class developments like Harborside 8. This sizable transaction is a direct result of unmatched local expertise and proven execution by Panepinto & AJD – names that have shaped the Jersey City skyline for decades," said Didio Jr. "Thank you to Kennedy Wilson and Affinius Capital for their partnership – together powering the newest benchmark for luxury living on the Gold Coast."

"It is deeply fulfilling to see this journey come full circle - from the 1996 land acquisition that enabled the development of Harborside Plaza 10 to today, as we commence construction on Harborside 8 and 9," stated Joseph Panepinto, Sr. of Panepinto Properties.

"Harborside 8 aligns with our team's strategy to support transformative multifamily developments in regions experiencing rapid growth. We are proud to play a role in bringing this high-impact multifamily project to fruition in Jersey City, which continues to experience low vacancy levels and consistent rent growth," added Thomas Whitesell, Head of Kennedy Wilson's Debt Investment Group. "This financing will enable Kennedy Wilson to deepen partnerships with a best-in-class development team between Panepinto Properties and AJD Construction, and we are excited to contribute to the success of an exceptional new residential tower that will have a dramatic impact on the Jersey City skyline."

The development partners plan to break ground in Q1 2026 with stabilization anticipated in Q1 2030. Panepinto Properties, founded in 1977, has distinguished itself as a pioneer in outstanding commercial, residential and mixed-use developments throughout Jersey City, while AJD Construction has built over 50,000 apartments valued at over $6 billion since its founding in 1977.

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL's newsroom. 

About Panepinto Properties
Panepinto Properties has been a market leader and innovator in Jersey City real estate development since 1977, engaging in innovative real estate projects nationally and internationally with a focus on design and infrastructure development, long-term property and asset management and contemporary fine art services for residential, office and hotel projects. As an independently owned and operated company, Panepinto Properties works closely with financial institutions, city and state agencies, engineers, architects, designers and artists to ensure each project is unique and successful while transforming and energizing neighborhoods to create value for the local community.

About AJD
Founded in 1977 by Anthony J. Diaco, AJD Construction is a privately owned general contractor specializing in low/mid/high-rise residential buildings.  For nearly 5 decades, AJD has prided itself as a streamlined company of productive individuals with common goals in mind: job completion and efficiency, and ultimately, customer satisfaction. AJD has built over 60,000 apartments generating a portfolio valued at over $20 Billion USD.

About Kennedy Wilson
Kennedy Wilson (NYSE: KW) is a leading real estate investment company with $31 billion of assets under management in high growth markets across the United States, the UK and Ireland. Drawing on decades of experience, its relationship-oriented team excels at identifying opportunities and building value through market cycles, closing more than $60 billion in total transactions across the property spectrum since going public in 2009. Kennedy Wilson owns, operates, and builds real estate within its high-quality, core real estate portfolio and through its investment management platform, where the company targets opportunistic equity and debt investments alongside partners. For further information, please visit www.kennedywilson.com.

About JLL 
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $23.4 billion and operations in over 80 countries around the world, our more than 113,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com. 

Contact: Gréta Kieras, Senior Associate, Public Relations
Phone: +1 949 930 8498  
Email: greta.kieras@jll.com

 

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SOURCE JLL

FAQ

What financing did Panepinto Properties & AJD Construction secure for Harborside 8 (KW)?

They secured a $306M senior non-recourse floating-rate construction loan plus $78M in preferred equity, totaling $384M.

When will construction start and when is Harborside 8 (KW) expected to stabilize?

The partners plan to break ground in Q1 2026 with stabilization anticipated in Q1 2030.

How large is Harborside 8 and how many units will it include?

Harborside 8 is planned as a 65-story tower with 678 units and 719,726 rentable square feet.

Who provided the senior loan and preferred equity for Harborside 8 (KW)?

Kennedy Wilson provided the senior construction loan and Affinius Capital arranged the $78M preferred equity.

What amenities and public improvements are planned for Harborside 8 (KW)?

The project includes >20,000 sq ft of amenity space, an indoor pool, rooftop terraces, co-working rooms, and a 40,000 sq ft waterfront public park.

How does the financing structure affect investor risk for Harborside 8 (KW)?

The floating-rate senior loan may increase interest-rate exposure during the multi-year construction period to stabilization.