Private construction lender S3 Capital has originated a $49 million construction loan to finance the development of a new residential community in Allenhurst.
The project will include 28 luxury townhomes and a 23-unit fully affordable apartment building, representing the first two phases of a planned multi-phase condominium development.
The homes will be in Allenhurst’s exclusive coastal enclave in Monmouth County. Here, new, high-quality housing has historically been limited by geographic and zoning constraints.
The project is being developed by RedHoek+, led by Lee Cohen, a long-time S3 borrower and partner with whom the firm has completed seven successful transactions.
Only one commercial multi-family building has been constructed in Allenhurst or Deal in the past 40 years. There are essentially zero lots in Allenhurst that can be developed into this type of project, and no development is slated for 2026.
The only “developments” that may have occurred in Allenhurst in the past three years are the redevelopment of a dated single-family home.
“Allenhurst is a very close-knit community where demand is driven by highly localized buyer dynamics,” Shawn Safdie, Head of Origination at S3 Capital, said in a release.
“Deep community knowledge and strong local relationships are key components of delivering successful real estate projects in a submarket like this. Our familiarity with both the sponsor and the needs of the end buyers makes us uniquely qualified to underwrite this financing and to provide construction capital efficiently.”
The townhouse component comprises 28 four-bedroom residences with attached garages, modern layouts, and high-end finishes.
The apartment building will provide 23 fully affordable rental units, further diversifying the project and contributing to the borough’s housing mix.
“Allenhurst is one of the most coveted addresses on the Jersey Shore,” Lee Cohen, CEO of RedHoek+, said in a release.
