Downtown building acquired in sheriff’s sale

A mixed-used building that was one of the early downtown redevelopment projects was acquired last fall in a sheriff’s sale.

The property at 65-73 E. Milton Ave. (Block 312, Lot 1.01) was acquired in October 2015 at sheriff’s sale by a New York City-based private equity fund manager.

The $1.3-million redevelopment project called the Silcon building was started in June 2000 and completed in 2001. PNC Bank foreclosed in January 2015 on the mortgage of Rahway Investments, LLC, an entity created by Silcon Development, the developers behind Carriage City Plaza.

65 E Milton Avenue.2010 FILE PHOTO
(2010 file photo)

The buyer is listed as MLF3 Rahway, Inc., an entity of Maverick Real Estate Partners, which is a six-year-old “private equity fund manager that acquires loans, mechanic’s liens and judgments secured by real estate.” The firm picked up the property, which had mortgage and interest of $1.818 million, for $1,000 in a Sheriff’s Sale, according to the deed filed last October.

The building at the corner of Fulton Street has four ground-floor retail spaces, two of which currently are occupied, by Michelino’s Pizzeria and MetroPCS, and eight apartments on the second floor. The property is assessed at $738,100, generating an annual property tax bill of about $48,900, according to records.

The Redevelopment Agency approved a resolution at its meeting last week authorizing the issuance and execution of a certificate of completion for 65-73 E. Milton Ave. (Block 312, Lot 1.01). During the title search process in the recent sale, the redevelopment agreement was recorded but never closed out, Executive Director Leonard Bier explained to commissioners. The resolution and certificate acknowledges that the redevelopment project is completed and the new owner has no obligations, he said.

Per the resolution, the Silcon building rehabilitation was among the first redevelopment projects by the Redevelopment Agency, which was created in January 2001 to oversee and guide redevelopment.