Jersey City luxury apartments get US$331 million loan from CDPQ

A major Canadian pension fund is backing a significant real estate project in the United States. The Caisse de dépôt et placement du Québec (CDPQ) has provided a loan of US$331 million to support the construction of luxury apartments in Jersey City, New Jersey. This investment reflects CDPQ's ongoing strategy to diversify its portfolio by investing in high-quality real estate assets outside of Canada.​

The development, known as the Hudson Exchange, is being led by the real estate firm Tishman Speyer. Situated on the Jersey City waterfront, the project will feature two residential towers: 55 Hudson and 50 Hudson. Once completed, these buildings will offer nearly 2,000 rental units, along with retail spaces and a waterfront plaza. Construction on the first tower is expected to begin soon, with completion anticipated in early 2027.​

Securing financing for large-scale construction projects has become more challenging due to rising interest rates and fluctuating property values. Despite these hurdles, developers remain optimistic about the demand for rental housing, particularly in urban areas experiencing housing shortages. The partnership between CDPQ and Tishman Speyer underscores confidence in the long-term viability of the Jersey City housing market.​

This investment is part of CDPQ's broader initiative to expand its presence in the U.S. real estate market. In recent years, the pension fund has increased its investments in various American housing sectors, including student and multifamily housing. By focusing on projects with strong growth potential, CDPQ aims to generate stable returns for its beneficiaries.​

Jersey City has become an attractive location for real estate development due to its proximity to New York City and its evolving urban landscape. The city's waterfront area, in particular, has seen a surge in residential and commercial projects, transforming it into a vibrant community. The Hudson Exchange project is expected to contribute significantly to this ongoing transformation.​

For Canadian investors and pensioners, CDPQ's involvement in such international projects highlights the fund's commitment to seeking diverse investment opportunities. By allocating resources to promising developments abroad, CDPQ continues to work towards securing long-term financial stability for its members.