The city of Bayonne has sold three lots totaling 15 acres on the former MOT site for slightly less than $11.7 million.
The buyer, a joint partnership that included two companies that purchased the nearby Costco site property, plans to build two buildings with 651 luxury rentals at the site along Goldsborough Drive, in the area of the Peninsula at Bayonne Harbor the city has designated as Harbor South.
JMF Properties, RD Management LLC, and Accurate Builders and Developers, under the name Bayonne Redevelopers Urban Renewal, expect to break ground on the project in the fall, a spokesman said. The plans include 25,000 square feet of lifestyle amenities, including a rooftop resort-style swimming pool that overlooks the golf course, officials said.
"This is yet another sign that MOTBY development is a reality and that our commitment to creating a brighter future for Bayonne is well underway," Bayonne Mayor Jimmy Davis said in a statement. "JMF Properties, Accurate Builders and Developers and RD Management all have a proven track record of delivering new ratables to municipalities and injecting new energy into important, underutilized properties, and we're more confident than ever that they are the right partners for the city."
A 30-year tax abatement was approved for the project in August 2017, more than a year before the sale was finalized. Under the tax break, 10 percent of the project's revenue will go to the city for the first five years, before increasing to 11 and 12 percent in future years.
JMF Properties and RD Management are also developing 240,000 square feet of retail space, with Costco Wholesale as the anchor and a number of prominent retail operators already under lease, officials said. The 15-acre Costco site was purchased in March for $2 million, according to tax records.
"Bayonne is a quickly emerging New Jersey Gold Coast destination, and we are thrilled to partner with the city in its vision for this incredible, untapped waterfront asset," Joseph Forgione, the founder and principal of JMF Properties, said in a statement. "We've delivered on our promise to bring meaningful retail to the property, with Costco slated to open ... in early 2019, ... and are now delighted to get started on a high-end residential offering that will bring an energy-infused, dynamic living experience to Bayonne."
Officials are touting the location of the planned residential development, citing its close proximity to the planned ferry terminal and easy access to the Hudson-Bergen Light Rail 34th Street station, officials touted.