A new gold rush.

Byline: Jessica Perry

In April, the New Jersey Economic Development Authority approved a new Brownfields Loan Program that will provide up to $5 million of low-interest per-project financing to help complete remediation of vacant or underutilized brownfield sites, where hazardous substances are either known or suspected to exist. Aimed at assisting under-served communities, the program will help potential brownfield site purchasers and current brownfield site owners to cover costs associated with site investigation, assessment and remediation; and building and structural issues such as demolition and asbestos removal.

There's a lot of work to do. According to the federal Environmental Protection Agency, there are an estimated 45,000 contaminated, or "brownfield" sites in the U.S. The Garden State alone is home to more than 14,000, according to the New Jersey Geographic Information Network Open Data Site. That's a heck of a challenge. But for some real estate developers and other professionals, it can also be a significant opportunity.

Population shifts drive demand

During the past couple of decades, as more people moved to urban areas, land prices have marched higher and developers have increasingly looked to rehabilitate existing properties. But many of the "clean" or easily developed sites have already been scooped up. So "more buyers and sellers understand that contamination issues can critically affect redevelopment projects' financial viability, which is why we've been doing what we're doing: to make these sites more financially viable for redevelopment," said J.R. Capasso, Trenton's Brownfields Coordinator. "It's easier to have conversations with potential developers because they have a better understanding of the issues. We've always been extremely diligent and honest at reporting existing conditions."

Sustained growth and development have driven an increase "in prices for purchasing and renting in places like Philadelphia, which will continue to force people to look at places like Trenton," he added. "Even in Trenton itself, rental rates are increasing, and residential prices will probably follow, given increases in more expensive suburban homes lately. We have a few developable sites that are receiving more interest and inquiries, especially the few industrial parcels and the few other large parcels."

To encourage developers, some sites are cleaned up by the city for unrestricted use; "other times we only characterize a site and...