Daewoo Engineering & Construction has confirmed its investment in a residential development project in New Jersey, marking its entry into the North American real estate market.
On July 3, the company announced that it finalized its investment in the "Palisades Park Residential Development Project" located in Bergen County, New Jersey, on June 30.
This project represents Daewoo's re-entry into the U.S. real estate market after nearly 20 years. The company plans to leverage its domestic housing expertise and experience from overseas urban development projects, such as the Star Lake City in Vietnam, to establish a foothold in the key residential market of the U.S. East Coast.
The Palisades Park project will be developed on West Ruby Avenue in Bergen County, New Jersey, with an estimated total cost of approximately $291 million, or about 437.4 billion won.
The development will consist of an 18-story residential building with 540 housing units, parking facilities, and neighborhood commercial spaces. It is located about a 30-minute drive from Manhattan's central business district and approximately 20 minutes from Newark Liberty International Airport and LaGuardia Airport.
The site is also adjacent to one of the largest Korean communities in the U.S., the New Jersey Korean Town. Daewoo expects strong interest from professionals commuting to Manhattan, newlyweds, and members of the Korean community.
Daewoo's U.S. investment subsidiary, DUSAI (Daewoo USA Investment), will collaborate with the local real estate development firm Tamarese as a joint developer for this project. The two companies plan to finalize a joint venture agreement and land acquisition by the end of this month, followed by obtaining remaining permits and recruiting investors, with construction slated to begin in 2028. The construction period is expected to last about 32 months, with completion and operation targeted for 2031, after which the project will be sold.
Daewoo's foray into the U.S. real estate market began in 1988 with a senior housing project in Seattle. The company continued to engage in housing projects in Texas and New York, including the Trump World Tower project in Manhattan in 1997, until the mid-2000s.
In 2023, Daewoo established a local subsidiary in New York, laying the groundwork for its re-entry into the North American real estate market. Last September, Chairman Jeong Won-joo visited the Prosper area near Dallas, Texas, to sign a memorandum of understanding for a mixed-use development project with the local developer Orion R Capital.
In the second half of this year, Daewoo plans to actively pursue the "Prosper Mixed-Use Development Project" in Texas. Prosper is an emerging affluent area known for having some of the best public schools in the U.S., and the project will include high-end housing, luxury homes, hotels, and office spaces.
The profitability of overseas real estate development projects can vary based on local permitting, financing, and changes in demand for sales and rentals, making the establishment of stable local partnerships a key factor for success.
Daewoo aims to accumulate investment and development capabilities as a developer rather than just a contractor through this project, establishing a stable development platform in the North American real estate market.
A Daewoo official stated, "The Palisades Park residential development project is significant as it is the first project to expand our top-tier housing competitiveness accumulated domestically and our verified overseas real estate development capabilities into the U.S. market."
He added, "We will continue to expand our development projects in major overseas real estate markets, including the U.S., based on strategic partnerships with local excellent partners, securing new growth engines as a global developer."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.