Tag Archives: condos

Carriage City Plaza, Polls, Rahway

Carriage City Plaza tops 2008 stories

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Blog readers voted overwhelmingly for the opening of Carriage City Plaza and the Hotel Indigo as the biggest redevelopment story of 2008.

Opening of Carriage City Plaza, 54 percent (37/68)
The slow pace of redevelopment, 19 percent (13/68)
The Savoy coming to a halt, 8 percent (6/68)
Reopening of the Union County Arts Center, 8 percent (6/68)
The fast pace of redevelopment, 5 percent (4/68)
Tabulation of the Rahway Survey, 2 percent (2/68)

While most readers pointed to Carriage City, there were almost a third of them who pointed to signs of the slowing economy, like The Savoy coming to a halt and the slow pace of redevelopment. Keep in mind that the survey is far from scientific at all.

The new poll will be up after the Super Bowl. It’s a repeat from last year but we have a few more readers so I thought it’d be interesting to take another look.

“Who makes your favorite pizza in Rahway?”
Brooklyn Pizza
Gino’s
Michelino’s
Nancy’s Townhouse
Papa Vito
Rahway Pizza
Ted’s
Tony’s

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The Savoy seeking financing

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Developers of The Savoy are trying to renegotiate a loan with Wachovia bank, City Administrator/Redevelopment Director Peter Pelissier reported at last week’s Redevelopment Agency meeting. Pelissier said he’s received messages from Glen Fishman, managing director of Hillside-based Dornoch Management, indicating the firm is still committed to completing the 36-unit condo project. Pelissier estimated Dornoch already has invested $3.5 million in the project.

Dornoch’s investors, a hedge fund based in Holland, apparently are looking for a lender before they make another capital call, Pelissier said, adding that a loan had been in place until it was called in to renegotiate by Wachovia. Charlotte, N.C.-based Wachovia was acquired by Wells Fargo last October after overtures from Citigroup. If Dornoch can’t get a loan, Pelissier said, The Savoy may become rentals but the firm is aiming to complete the project as the originally proposed condos.

Pelissier said Fishman wants to complete The Savoy as for-sale condos, before moving onto the firm’s other projects along East Cherry Street (the storefronts that include The Beverage Shop). Fishman has told city officials that he’s interested in selling the burned out East Cherry Street property which Dornoch purchased from the Parking Authority and as recently as November 2007 had plans to renovate it.

The Savoy’s retail space has been marketed by The Schultz Organization, a Woodbridge-based commercial real estate firm, as recently as December with a projected occupancy of “fourth quarter 2009.”

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Apartments, Downtown, Redevelopment Agency

Carriage City violating redevelopment agreement

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Apparently in violation of its redevelopment agreement, Carriage City Properties has been advised by the Redevelopment Agency that it needs approval before renting unsold units on its own in the 16-story building. The builder also has filed a tax appeal, which could be settled shortly.

Redevelopment Director and City Administrator Peter Pelissier reported at Wednesday night’s meeting that the redevelopment agreement would have to be renegotiated. Specifically, it would be modified to stipulate payment of the $10,000 redevelopment fee to the agency at the time the unit is occupied, instead of at closing.

Of the 209 units, about 48 units have closed and a total of 76 Temporary Certificates of Occupancy (TCO) have been issued, according to Pelissier. Several units can be found advertised as rental apartments on various Web sites but those are individual owners who purchased the units, which is allowed. Last month a Rahway Rising reader pointed out a craigslist ad that clearly indicates SkyView as the rental agent, which Pelissier said prompted a Jan. 5 letter from the agency’s attorney to Carriage City Properties.

Carriage City also has appealed its tax assessment of almost $60 million (equalized ratio of about $25 million), which this year will generate $1.2 million in property taxes. That issue may be settled at Monday’s City Council meeting, Pelissier said.

Units at SkyView at Carriage City Plaza so far have sold for an average of about $296,000, with a low of $225,000 and high of $444,000.

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Apartments, Carriage City Plaza, Condos, Downtown, Rahway

Developments go rental — not just in Rahway

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Informative story in Sunday’s New York Times about condo projects turning to rentals, namely the state law that says after 75 percent of units are sold, “management shifts control to a homeowners’ association.”

It’s definitely worth a read, and particularly timely and relevant in Rahway. Apparently, it’s not uncommon in this market to go from condo to rental:

Developers often decide to switch from condo to rental, or vice versa, depending on which way the market is turning. Mr. Stolar said that he was aware of several condo developers who were contemplating the switch at buildings where sales are going slowly — or are even stalled — right now. And he isn’t the only market watcher to see this as an issue for a number of builders.

Switching to rentals is “a way to create cash flow,” he said, “and the rental market is still strong” compared with the condominium market.

Not only have two projects originally planned as condos shifted to rentals this year, but I’ve been asked a few times whether Sky View at Carriage City Plaza is converting to rentals. Not likely. While individual unit owners can rent their apartments (and several units have been purchased by the same owner, by my count), Silcon Inc. would have to seek approval from the Redevelopment Agency to amend the redevelopment agreement. And I’ve heard nothing to even hint that such a move would be sought — much less gain approval.

With 209 units in Sky View, 75 percent of the building would be 157 units. By my count, almost three dozen units officially have sold and appeared in property transactions, but I’ve heard that as many as 65 percent of the units have closed.

Happy Thanksgiving!

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Condos, Downtown

The Savoy at a standstill

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Just a few months after steel began to rise at The Savoy, the developer that’s heading up several projects in the city has apparently run into unspecified “economic difficulties.”

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Apartments, Zoning Board

Nine units OK’d for former Koza’s site

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Ten months after denying a plan for 12 units, the Zoning Board of Adjustment on Monday night paved the way for nine condominium apartments at the site of Koza’s Bar (197 W. Scott Ave./Block 231, Lot 16).

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Carriage City Plaza, Condos

Two dozen units close at SkyView

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The Redevelopment Agency is expecting a payment of $202,000 in fees for the sale of units at Sky View at Carriage City Plaza, Redevelopment Director/City Administrator Peter Pelissier said at last night’s agency meeting. Based on the redevelopment agreement and a new deferred payment schedule, that would mean about 40 units have closed so far.

I’ve heard that as many as 60 units have closed but only about two dozen have appeared in property transactions so far. The average for the 23 units closed so far is about $288,272, with a low of $233,050 and a high of $444,000. There were three purchasers with the same last name who bought two units in the building, according to real estate transactions.

The redevelopment agreement with Elizabeth-based Silcon Inc. calls for the agency to receive $10,000 per unit upon closing of each unit. This past summer the agency agreed to defer half the payment until it reached the level of water connection fees paid in June ($331,194). At $5,000 per unit, that would mean about 40 units have closed, given the $202,000 payment.

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Apartments, Downtown

Station Place rentals approved

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The Planning Board unanimously approved an amended preliminary and final major site plan for Station Place on Tuesday night, paving the way for 116 rental units instead of the 80 condos that gained approval 18 months ago.
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