Category Archives: Downtown

Irving St. side of Park Square 90% leased

About 90 percent of the units at Park Square are occupied with 57 of the 63 units in the Irving Street building leased, according to rental manager Nilyne Fields.

 

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‘The Smoldering Hedge Fund’ and Rahway

A fellow local blogger in Plainfield alerted me to a Fortune magazine story from several weeks ago. “The Smoldering Hedge Fund”, a three-month-long investigative story details the troubles of Greenwich, Conn.-based Plainfield Asset Management. What’s this got to do with Rahway?

P & F Management
was founded in 2005 as a joint venture of Plainfield Asset Management (PAM) and Glen Fishman of Lakewood-based Fishman Real Estate Enterprises. Fishman is managing partner with Dornoch Holdings, which is owned and operated by P & F Management. Dornoch had multiple projects in the works — The Savoy (photo below), The Westbury — and bought up several other properties downtown for millions at the height of the real estate boom in 2006 with plans for redevelopment. Dornoch also has a project in Plainfield.

Plainfield Asset Management once managed $5 billion but today oversees $3.3 billion, according to Fortune, and “has faced a wave of withdrawal requests, which it contained only by invoking a contract clause and refusing to let investors withdraw money.” Of the $3.3 billion, $2.7 billion represents money from investors who weren’t permitted to leave, and won’t until 2012. As the Fortune story puts it, only $560 million managed by PAM is from people who “actually want the firm to run their money.” The fund continues to charge investors management fees.

Without getting too much further into it, PAM is “fending off suits from borrowers,” according to Fortune, and its “lending practices are now being examined by the New York City’s district attorney.” I encourage you to read the Fortune story in its entirety.

How does this all affect Dornoch’s Rahway projects? It’s unclear exactly but it can’t possibly be good. I’d ask someone at Dornoch but the number to their Hillside offices has been disconnected maybe I’ll pay them a visit. [Feb. 10 UPDATE: Since this original post, I was able to get through on the phone, if only to a maze of voicemail menus and greetings. So apparently the phone is not disconnected.]

Asked about the report in Fortune, Mayor James Kennedy said he never heard of P&F Management and doesn’t know who Fishman’s partners are, while City Administrator and Redevelopment Director Peter Pelissier said he was aware of a Holland-based hedge fund backing Dornoch.

‘Eye candy’ planned for downtown areas

A variety of public art will grace downtown areas as part of the plan to show that Rahway is “All About the Arts.”

In a post-State of the City interview last month and a public presentation before the Redevelopment Agency last week, Mayor James Kennedy talked about murals and sculptures scattered around the downtown loop as part of an overall plan focusing on the arts. He described the visual arts piece as a complement to performing arts initiatives such as the amphitheater and black box theater planned for Hamilton Street and gallery space in the YMCA and Elizabethtown Gas building. The “eye candy,” as the mayor describes it, is expected by mid-summer.

As examples, Kennedy noted the walkway connecting Main Street and the parking lot behind River Place as an ideal spot for a mural or a sculpture, in addition to some areas connecting Hotel Indigo to the Lewis Street parking deck. “The whole arts picture has been growing in many pieces that ultimately is coming together now,” he said.

A committee will determine about two dozen quirky spots downtown for sculptures, which then would be cataloged into a booklet for a sort of sculpture garden. The city would be responsible for the footings but artists would cover the cost of their own sculptures. “The advantage to artists is not that they’re paying for their own sculpture but the advantage is that it gives them exposure and exhibition space,” Kennedy said.

Another program will copy what was done in Ithaca, N.Y., where The Sagan Planet Walk at Sciencenter pays homage to the Rahway native and noted Cornell astronomer. A scale model of the solar system would station planets at specific locations between City Hall and the Arts Guild. The program also would incorporate the high school physics program, the mayor said, while the educational piece would include brass descriptions of the technical data about the size and composition of planets. The sculptures would be to scale so some might be as small as a tennis ball while others might be much larger.

“The neat thing is that it brings a sense of community, it’s a something-to-do kind of thing,” Kennedy said, adding that these initiatives aim to create a pleasant atmosphere but also catch the attention of passersby.

A third aspect of the visual arts piece is a window treatment program like one that was done for the Carriage City Plaza sales office. People looking into the windows can see the image or art while those on the inside can clearly see outside. Rather than have paper covering up vacant storefronts, Kennedy said the city also is trying to encourage empty stores to allow the space for use by artists until they are leased.

Woodruff Building changes hands for $775k

The Woodruff Building netted $775,000 in a sale that closed recently, according to this Jan. 22 report (now behind a subscription pay wall) on GlobeSt.com.

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First sale of ’09 for Sky View at Carriage City Plaza

For the first time in about 50 weeks a unit sold in Sky View at Carriage City Plaza, according to property transaction records.

Continue reading First sale of ’09 for Sky View at Carriage City Plaza

Catching up on tenant turnover

There’s been a bit of turnover in some downtown spaces the last few months, particularly along East Cherry Street.

Continue reading Catching up on tenant turnover

After many months, dessert cafe opens

The windows are no longer covered and there was some activity as I drove home along Irving Street last night: InTheMix dessert cafe is open.

We first reported in May that the cafe would be coming to the corner of Irving and West Main streets and it finally opened last night. It’s been almost a year since a photo and camera shop left the 1,200-square-foot space.

If anyone pays a visit to InTheMix, let us know what you think.

Riverwalk not the only project Diversified ditched

Riverwalk, with its last 19 unsold units going into foreclosure, isn’t the only construction project abandoned by Diversified Communities.

I came across this story in the Triangle Business Journal (Raleigh, N.C.) from last month about L’Hermitage, a project where Diversified had planned 125 condos, 75 townhomes and 35 single-family units. Only two were sold and barely two dozen completed in all. Work stopped in spring 2008 and the abandoned project is described as “the poster child for the housing industry’s downfall.

Spring 2008 was about the time Diversified parted ways with DeBartolo Development on the Town Center project proposed for the City Hall property some three years ago.

Some key passages from the story:

— “Diversified Communities…walked away from the project in 2008, leaving two dozen homes in various stages of construction. Diversified…built the roads, sewer lines, water lines and power infrastructure…as well as a 5,000-square-foot clubhouse with a swimming pool and tennis court.

— “Diversified had sold two homes in the community for more than $480,000 each and had started construction on 12 condominiums and 11 other single-family homes when work stopped. Some homes are finished, others are about halfway complete. “It’s been more than two years since I’ve spoken with anyone at Diversified,” Apex Town Manager Bruce Radford said. “They walked away from millions in ground there already.”

— “In its unfinished state, the property has become the victim of vandals and neglect. A 3,200-square-foot unfinished home in L’Hermitage was destroyed by fire in mid-September. The clubhouse was severely damaged when a water pipe burst and flooded the building.”