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.”
Yeah sure, “fourth quarter 2009” occupancy for the Savoy’s retail space … At the going rate, it will be a miracle if the Park Sqare rentals will be open by Q4 2009, and if the Savoy even restarts construction before the end of the year.But hey, if I’m wrong, I’ll buy everyone a drink at KC Jazz which opened fall 2008, right? 😉
What is happening in America right now is not Rahway’s fault, but Rahway will suffer as a result of gross misconduct among myriad political and financial markets players. Take your pick. Was it the loose financial regulations? Blame Gramm and Cox. Was it the call to have every American who wants one in a home? Blame Fannie Mae. Interest rates went to low for too long? Thank Al Greenspan. Greedy people looking for a quick return on their “home investment” even though they had no income or creditworthiness to support it? Thank the person sitting next to you. The list goes on.Rahway’s Redevelopment though years in the making, was a few years too late in the execution. That is why we have a half-empty condo development as our centerpiece for downtown and it remains surrounded by unfinished new development.Do not look to Obama to save us. His ‘new deal’ might put some people to work and help boost spending on construction materials. However, every local and state politician around is making their wish-list of projects that will please their political constituencies and of course, organized labor. These projects epitomize pork-barrel spending and it won’t be any different this time. I am sure we will see two unnecessary projects for every needed highway repair project.I won’t even guess when the Savoy or Park Square or KC Jazz projects will open. One only need drive through “established” suburban downtowns around NJ and around the country to see what the future holds. The best business to be in right now is in the Sign Making Business; there should be good money in printing lots of “Going Out of Business” banners.If you are relying on the mainstream media for your news, you are under the impression that this boat will turn around sometime between late 2009 and 2010. Don’t kid yourself. Look for counterpoints. It will take years and years.
I see Maplewoodhomes has front page of real estate section in sundays 1/25/09 star leder for more condos at vista great falls, have no money to build savoy, guess they want to collect more deposits, they should hire a ” real” marketing team whats there now not doing the trick.