S3 Capital has provided a $49 million construction loan for the initial phases of a new residential community in Allenhurst, a coastal enclave in Monmouth County, NJ. The financing supports the first two stages of a multi-phase plan that combines luxury townhomes with income-restricted apartments, introducing a mix of for-sale and affordable rental housing to the community.
The development is led by RedHoek+, which is serving as the project developer. The firm is headed by Lee Cohen, described as a longtime S3 Capital borrower. According to the parties, S3 Capital and RedHoek+ have now completed seven transactions together, reflecting an ongoing lender-sponsor relationship that is continuing with this Allenhurst project.
The loan proceeds will fund construction of 28 luxury townhomes as well as a 23-unit fully affordable apartment building. These components make up the first two phases of the larger master plan. The broader vision for the site includes additional residential phases beyond the current work, among them a condominium building anticipated to deliver more than 30 units in a future phase.
The townhouse phase is planned as a collection of 28 four-bedroom residences. Each home is expected to include an attached garage and modern interior layouts, along with high-end finishes. The fully affordable apartment building will deliver 23 rental units that are designated as affordable, expanding the area’s stock of income-restricted housing alongside the new luxury townhomes.
Commenting on the financing, Shawn Safdie, head of origination at S3 Capital, emphasized the lender’s longstanding relationship with the sponsor and familiarity with the target buyer base. He noted that this experience allowed S3 Capital to underwrite the transaction efficiently and deliver the construction capital required for the next stages of the Allenhurst project.
The development forms part of a larger residential growth story within Allenhurst’s coastal setting in Monmouth County. With additional phases, including a prospective 30-plus-unit condominium building, planned beyond the current scope of the loan, the project is positioned as a multi-stage expansion of the community’s housing options. The initial financing from S3 Capital enables RedHoek+ to advance the first two residential components while laying groundwork for future phases as the master plan progresses.
Photo: Allenhurst Residential Historic District. Photo by Apc 106.
