Daewoo Engineering & Construction is set to expand its presence in the North American real estate market with a finalized investment in the Palisades Park residential development project in New Jersey. This marks the company’s return to U.S. property development after nearly two decades, signaling an acceleration of its global expansion efforts.
The firm announced on Friday that it had made the final decision to invest in the Palisades Park residential development project in Bergen County, New Jersey, as of June 30.
The ambitious Palisades Park project, situated along West Ruby Avenue in Bergen County, New Jersey, is a large-scale residential development with a total investment of approximately 291 million USD. Plans include an 18-story building housing 540 residential units, along with parking facilities and community amenities.
Strategically located, the site is just a 30-minute drive from Manhattan’s bustling central business district and about 20 minutes from both Newark International and LaGuardia airports. Its proximity to one of the largest Korean-American communities in the U.S. is expected to drive robust demand for housing.
For this venture, Daewoo USA Investment (DUSAI), the U.S. investment arm of Daewoo Engineering & Construction, will collaborate with New York-based real estate developer Tamares as joint venture partners.
The partners aim to establish their joint venture and finalize land acquisition by the end of this month. Following this, they will proceed with obtaining remaining permits and recruiting investors, with groundbreaking scheduled for 2028. The construction phase is estimated to last 32 months, with plans to sell the property after its completion in 2031.
This project represents Daewoo Engineering & Construction’s first foray back into the U.S. real estate market in nearly 20 years. The company’s previous U.S. endeavors included a senior housing project in Seattle in 1988 and the Trump World Tower project in Manhattan in 1997, with activities continuing until the mid-2000s.
In preparation for its re-entry into the North American market, Daewoo established a local entity in New York in 2023. Last September, Chairman Jeong Won-joo visited Prosper, Texas, where he inked a memorandum of understanding with local developer Orion RE Capital for collaboration on a mixed-use development project, further solidifying the company’s U.S. market strategy.
Through this project, Daewoo Engineering & Construction aims to expand beyond its traditional role as a contractor, enhancing its capabilities as an investor and developer while building a robust platform for real estate development in North America. The company also plans to launch its mixed-use development project in Prosper, Texas, in the latter half of this year.
A spokesperson for Daewoo stated that this project represents the first step in leveraging the expertise from domestic housing projects and overseas developments to expand into the U.S. market. It’s committed to growing the development portfolio in key international markets, including the U.S., as it positions themselves as a global developer and secure new engines for growth.