Creative strategies insure growth in New Jersey.

Developers active in New Jersey today face a barrage of challenges. The short supply of open land suitable for development, increasingly complex environmental regulations and a lengthy approval process all have contributed to the State's reputation as one of the most difficult regions in the nation for new development.

Yet, Kushner Companies remains committed to staying active in New Jersey. "Experts project one million new jobs and an equal number of new residents for New Jersey over the next 20 years," explains Jeffrey Freireich, managing director. "This means there will. continue to be opportunities. The challenge is finding locations to accommodate the growing population without increasing traffic congestion."

Moving South and West

Freireich, who has been a principle and executive with Kushner for 15 years and oversees zoning matters, approvals, acquisitions and operations for the company, said Kushner is responding to the scarcity of land and escalating prices in desirable areas, especially Hunterdon, Ocean, Monmouth and Somerset Counties, by targeting markets further west and south. "We are also focusing on urban centers where mass transit and needed infrastructures are readily available," he said.

Currently, Kushner Companies has approximately 10,000 residential units throughout New Jersey on the drawing board and in various stages of land development approval. The Company's existing ownership portfolio includes 15,000 multi-family units and several million square feet of commercial and industrial buildings.

Last year, the company extended its activities, with acquisitions and development taking place in Burlington, Camden and Gloucester counties. "Our expansion philosophy focuses on acquiring a concentration of property in a targeted market to enhance the efficiency of our management activities," Fraireich said.

Kushner companies is currently building Woodview at Marlton, a 288-unit apartment complex on Troth Road, four miles from the intersection of Routes 70 and 73, and in close proximity to Exit 4 of the New Jersey Turnpike.

In addition, Kushner completed three recent acquisitions in southern New Jersey, including Tory Estates in Clementon, Inverness Apartments in Westville, and Briarwood Manor in Deptford.

Freireich noted, "As industry moves south, regions such as Gloucester offer excellent investment potential."

Urban Centers Targeted in 2000

The lack of properly zoned land has caused Kushner Companies, which builds approximately 500 homes yearly through its construction arm, Westminster Communities, to turn its attention to the cities as well, particularly potential development sites in once-neglected areas.

"Historically, residential development has gone from the cities out to the suburbs," explained Freireich. "But now we're seeing the reverse happen, as developers refocus their attention on the state's urban centers."

As a result, Kushner is involved in the initial stages of redevelopment in Perth Ambroy, which has entered into a Memorandum of Understanding naming Westminster as the developer for 49 acres in the city.

"Gentrifying existing towns with redevelopment projects and in-fill development is a very exciting new opportunity in New Jersey," Freireich notes.

Diversification is the Key to Success

Kushner's aggressive but generally risk-aversive approach to expanding and diversifying its holdings has resulted in a number of new opportunities in the commercial marketplace as well. Last summers' acquisition of a 484,000 square-foot vacant building in Newark, with an adjacent 850-car garage (the former Mutual Benefit Life Insurance Company headquarters), "was a bold move for us," says Freireich. "But we had faith in Newark's renaissance."

Six months after purchase, Kushner achieved 100 percent occupancy when IDT, a telecommunications firm, signed a 20-year lease with three additional 10-year options.

"We continue to pursue acquisition and redevelopment opportunities in residential as well as commercial real estate throughout New Jersey," noted Freireich. "When a good situation comes along, we want to make the most of it. As a result, we expect a very active year and decade ahead for our organization."