The “Paulis Hook” section of Jersey City NJ is a largely upper-middle-class residential area, characterized by townhouses and midrise apartment blocks. Bordering the neighborhood to the East are ferry and subway (Path) services to Manhattan, and Type-A high-rise office buildings. Paulis Hook is also home to the (under construction) site of NJ’s tallest residential tower, being marketed to high-net worth individuals.
Developer X believes that, due to Manhattan’s constrained real estate and Paulis’ advantages over NYC’s outer boroughs, that its housing prices will continue to rise, and that much of the area will be rezoned for high rise residences over the next decade. X’s plan is to purchase one of the few remaining run-down, several-story rental buildings in the neighborhood, perform a gut rehab of it, then sell it to an Asset Management firm.