S3 Capital Provides $49M Construction Loan for Allenhurst Residential Development
S3 Capital has originated a $49 million construction loan to finance the development of a new residential community in Allenhurst, New Jersey, one of the most exclusive municipalities along the Jersey Shore.
The project, being developed by RedHoek+, will include 28 luxury townhomes and a 23-unit fully affordable apartment building, representing the first two phases of a broader multi-phase residential development planned for the site.
Mixed Housing Development Planned for Allenhurst
The townhouse portion of the development will consist of four-bedroom residences with attached garages and high-end finishes, designed to appeal to coastal buyers seeking new construction along the Jersey Shore.
Alongside the townhomes, the project will include a 23-unit affordable rental building, adding workforce housing to the borough and diversifying Allenhurst’s housing mix.
Future phases of the broader development plan could include an additional condominium building with more than 30 residential units, expanding the overall community footprint.
High-Barrier Coastal Market
Allenhurst is widely considered one of the most supply-constrained housing markets along the Jersey Shore due to limited developable land and restrictive zoning, which has historically constrained new residential development.
The borough sits roughly 60 miles south of Midtown Manhattan and has long attracted high-income buyers seeking coastal properties near the New York metropolitan area.
S3 Capital executives noted that developments in markets with significant barriers to entry often perform well when projects are carefully aligned with local demand.
Longstanding Developer–Lender Relationship
The project is being developed by RedHoek+, led by CEO Lee Cohen, a longtime borrower of S3 Capital.
According to the lender, the two firms have completed seven transactions together, highlighting an established relationship that helped support the underwriting and financing of the Allenhurst project.
Final Thoughts
The Allenhurst financing highlights continued lender interest in high-barrier coastal housing markets in New Jersey, where limited supply and strong demand support new residential development.
As Jersey Shore municipalities face increasing housing demand, projects that combine luxury ownership housing with affordable rental units may become an increasingly common development model across the region.
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