Tag Archives: Renaissance at Rahway

Apartments

Renaissance demolition coming

Leave a comment

Demolition of existing properties could begin as early as this month to make way for Renaissance at Rahway.

Redevelopment Agency attorney Frank Regan said last week’s agency meeting that developers have to close on financing by Friday, and assuming they do, demolition is anticipated later this month.

The 88-unit complex will eliminate Montgomery Street between East Grand Avenue and Monroe Street, eliminating the triangle. The City Council on Monday night approved vacating Montgomery Street and details on a revised access scheme for the neighboring Riverton complex is being worked out, Regan said.

Properties include the former Triangle Inn (at left in photo above) and a house next door that was badly damaged in a fire at least a year ago. An adjacent property, 239 E. Grand Ave. has a poster hanging in the window against eminent domain (left). The only property that was not acquired for the project was 273-275 E. Grand Ave., which is the MJ Bait and Tackle at the end of the triangle block.

Originally proposed as a 72-unit condo complex, developers got approval last summer from the Redevelopment Agency to switch to rentals. The Planning Board gave its approval in the fall.

_uacct = “UA-2976232-1”;
urchinTracker();

Downtown, library

State of the City 2009

1 Comment

Though I was unable to attend Monday’s City Council meeting, I did get a copy of Mayor James Kennedy’s State of the City address. The mayor is among a long list of officials looking for help from the feds.

“I retain optimism that this slowdown will only be temporary and the incoming administration of President-Elect Obama will provide long-overdue federal funds to invest in our roads, sewers, parks and other vital elements of our infrastructure,” Kennedy said. “Unlike other municipalities, Rahway has many projects that are already approved by the authorizing boards and agencies. Our improvements and investments will enhance our redevelopment opportunities. So that the ‘shovels can hit the ground’ as soon as the economy rebounds and our continuing redevelopment efforts will restart in a period of months instead of years,” he said.

Among the projects Kennedy cited as “ready to begin” are the 88-unit Renaissance at Rahway and 116-unit Station Place. The Savoy, he said, will “restart construction when additional financing is obtained.” (Photo at left)

As for other redevelopment-related highlights in his remarks, the mayor reviewed the various ongoing projects that you’ve read about here before:

— New ratables increased the tax base by $30 million for the nine-month period in 2008. A full year on the books is expected to create $42 million in 2009. A little perspective: ratables increased by about $30,000,000; the city’s total valuation is about $1,500,000,000 ($1.5 billion). The added ratables — mainly attributed to Carriage City Plaza, Luciano’s and Riverwalk — generated about $900,000 in additional tax revenues for the city.

— In addition to the planned 1,000-seat amphitheater at the former Hamilton Laundry site, and development of the former Bell Telephone building into a performing arts space and black box theatre, the former Elizabethtown Gas building is expected to be purchased and house a “first-rate art school as well as a co-op gallery venue.”

— “The 40,000 square feet of condominium space above the library was sold last year, and will be converted into office space sometime this year.” The library opened in 2004 with the idea of eventually selling the top two floors for office space. No word on whether the sale netted the $3.5 million that was expected at the time to help offset the cost of the $7.4-million facility. [UPDATE: SDI Technologies already paid $3.2 million to the city for this project, according to City Administrator Peter Pelissier.]

— The city is “exploring a partnership with the Parking Authority to construct a 300- to 500-space parking deck on Lot B, to complement the proposed Westbury housing/retail development next door.” We wrote about this study in August but there was never any mention of the number of spaces. Originally, The Westbury was planned with a five-story, 324-space parking facility.

For some historical perspective, there are a few paragraphs about the mayor’s 2005 State of the City address here.

_uacct = “UA-2976232-1”;
urchinTracker();

Uncategorized

Planning Board gives OK for 88 rentals

Leave a comment

The Planning Board last Tuesday gave major preliminary site plan approval and a bulk c variance for 88 rental units for the proposed Renaissance at Rahway. It’s the third time the Planning Board approved some form of the plan for the site on East Grand Avenue from Montgomery Street to Monroe.

There will be 88 parking spaces on the ground floor, one for each of the 44 one-bedroom and 44 two-bedroom units, with apartments above the parking on floors two through five.

An engineer for Renaissance said it would be impractical and economically infeasible for the site to comply with state Residential Site Improvement Standards (RSIS) for parking but alternate, local parking standards are allowed under the redevelopment agreement. Planning Board members were confident the commuting nature of the area would not require more parking spaces for the development.

Another aspect that will have to be addressed, but wasn’t required for site plan approval, is a new service access point for neighboring Riverton (the former Rahway Geriatrics Center) since the existing service access is from Montgomery Street which will be eliminated between East Grand and Monroe Street.

There also were some concerns from Planning Board members about the type of material to be used for the building’s facade, but Renaissance representatives assured the board they would use whatever material the city preferred. “We don’t want that type of issue to slow us down,” said Joseph Ranieri, an attorney with Weiner Lesniak representing Renaissance.

Developers presented modified plans to the Redevelopment Agency in August, which was the first time 88 units were suggested for the site. Originally, the idea was to build 72 for-sale condos but since the project shifted to rentals Renaissance had floated the idea of 64 rentals in a first phase, and possibly a second phase if one property eventually was acquired.

Developers will move forward on Block 379, Lots 2-8 and Block 378, Lot 1.01, leaving out Block 379, Lot 1, which could not be acquired from one property owner.

_uacct = “UA-2976232-1”;
urchinTracker();

Apartments, Carriage City Plaza, Condos, Downtown, Rahway

Developments go rental — not just in Rahway

Leave a comment

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!

_uacct = “UA-2976232-1”;
urchinTracker();

Uncategorized

Renaissance bumped up to 88 units

Leave a comment

With two more properties acquired since May, developers of Renaissance at Rahway have boosted the number of units from about 64 to 88. Representatives came before the Redevelopment Agency Wednesday night for approval.

In May, Rahway Rising reported that Renaissance had acquired five of the eight properties necessary and would move ahead with 64 rental units and possibly include a second phase once other properties were secured. Developers have since acquired Lots 5 and 8 of Block 379, leaving only Lot 1 (the corner of Monroe Street and East Grand Avenue). The revised project entails Lots 2 to 8.

Originally, the project was to be 72 condos, an even split of one- and two-bedroom units. Now the project will be 88 rental units (80 two-bedroom, 8 one-bedroom) in the five-story structure, with 88 parking spaces on the ground level.

Redevelopment Agency commissioners had some concerns about having enough parking (only one per unit, regardless of bedrooms) and whether parking would be covered (the property creates a triangle in the center of the building where spaces in the middle might be uncovered), but ultimately gave their consent. Commissioners preferred the parking be covered but developers are considering both schemes.

Entrance to the residences will be at the corner of Montgomery Street and East Grand Avenue, though it will no longer be a corner since the development includes building over Montgomery Street from East Grand to Monroe. Parking will be accessed from Monroe, near the present corner of Montgomery, essentially where the former Triangle Inn currently stands.

_uacct = “UA-2976232-1”;
urchinTracker();

Apartments, Downtown

Condo projects into rentals

21 Comments
If it can happen in everyone’s redevelopment mentor city of Hoboken, it can happen in Rahway. It looks like two projects originally planned as for-sale condos will become rentals.
The developer of Station Place has started to look at a plan for 116 rental units instead of 80 condos for the five-story project on a 1.6-acre site on Campbell Street. “Because of what happened in the economy in general, and the financial sector specifically, condos are very difficult to finance,” Clay Bonny of Heartstone Development said at last week’s Redevelopment Agency meeting. “Apartments are very easy to finance.” No major lenders are getting into condo construction, he said, so to keep the project moving, they decided to examine rentals instead.
A recent Wall Street Journal story pretty much confirmed the lending situation, for both consumer and businesses: “Banks continue to get more restrictive in their real-estate lending as the housing bust adds to their losses.”
Heartstone received Planning Board approval in March 2007 (.pdf) for 80 units, so it would have to get approval again for the increased density. Zoning currently allows for 60 units per acre.
The current occupant, A&M Industrial Supply, is under contract to be relocated to Edison, said Bonny. Some minor environmental issues on the property have to be cleared up, he added, so an extension on the closing has been requested through September.
Heartstone’s other project in Rahway, the 135 rentals at River Place, is 100 percent fully occupied for the first time since it opened in 2004, Bonny said.
Renaissance at Rahway was to be a 72-unit condo project on property encompassing the former Triangle Inn. Renaissance has five of the eight necessary parcels under contract so rather than go through what could be a two-year condemnation battle, developers will move forward with 64 rental units as part of a first phase. The second phase could include the remaining units if the properties are eventually acquired, said Joseph Ranieri, an attorney with Weiner Lesniak representing Renaissance. “This project works better under these economic conditions,” he said, adding that it’s not certain they can get financing for the whole thing.
The five-story project, which would include parking on the ground floor, would eliminate and be built on top of a short stretch of Montgomery Street between East Grand Avenue and Monroe Street.
Renaissance has been unable to acquire Block 379, Lots 1, 5 and 8. City Administrator and Redevelopment Director Peter Pelissier said the owners of Lots 1 and 8 are not interested in selling at all. An unacceptable counteroffer was received from the owner of Lot 5, he said, which bifurcates the whole project, so if it sells in the future, it could be added. It’s unclear how many more units could be built with Lot 5 part of the project, Pelissier said. “That’s the economic dilemma,” he said, the land costs versus the number of units that could be built; do you overpay for those or go through a costly, unfriendly sale?

_uacct = “UA-2976232-1”;
urchinTracker();

Apartments, Arts District, Downtown, Rahway, Wheatena

On tap for 2008: Park Square, Sky View

19 Comments

Nothing Earth-shattering in the mayor’s State of the City address last night. The new year should bring with it the completion of Park Square and Sky View at Carriage City Plaza, which includes a Hotel Indigo. Mayor James Kennedy pledged that downtown redevelopment efforts would continue to see progress this year, despite a downturn in the national economy as a result of the subprime mortgage crisis.
The largest portion of the mayor’s nine-minute remarks focused on a new billing method for sewage. He expects the city’s assessment from the Rahway Valley Sewerage Authority (RVSA) to increase from $3.6 million in Fiscal Year 2007 to $6.1 million in FY 2010, or almost 70 percent in the next three years.
Speaking of the subprime mortgage mess, what effect has it had on Rahway’s plans? I happened to pose that question to City Administrator and Redevelopment Director Peter Pelissier just last month, after reading about Asbury Park’s problems, and one Hoboken developer switching condo projects to rentals because of the housing market.
Pelissier said the city hasn’t been adversely affected by the real estate market — in terms of redevelopment — and rattled off an update on a number of projects:
* Park Square (rentals) has made plans to take out permits for the second building, which will face Main Street.
* Dornoch I (Main and Monroe streets) has taken out permits for The Savoy (36 units for purchase with 7,000 square feet of retail).
* Station Place (Five stories, with 80 units and 132 parking spaces, on Campbell Street between Elm and Cherry, for purchase) is still in the process of acquiring properties and relocating the main tenant, A&M Tool Co.
* Wheatena (Elizabeth and West Grand avenues) has requested assistance on the acquisition of properties for its 200-unit project (for purchase).
* Renaissance at Rahway, 72 units with underground parking, also requested assistance of the Redevelopment Agency to acquire the remaining three properties necessary to control the site (Triangle Inn area on Monroe Street). Five of the eight properties necessary are under contract.
* The Town Center project in the City Hall area is still being discussed, and the potential developer is negotiating with retailers as well as the property owners on the site. “As you can imagine this project is complex and will take some time to coordinate all the components of a project this size,” Pelissier said.
If a developer wanted to convert a condo project to rentals, as in some towns, the developer would have to come before the Redevelopment Agency again for approval, he said.
“Each week developers contact the mayor or myself inquiring as to the possibilities of developing in Rahway,” Pelissier said. “Also take a look around the downtown area, properties are being improved in the Arts District as well as throughout the downtown. This points out the small investor continues to believe in the future of Rahway as well as the larger developers.”
The mayor also mentioned that City Council has authorized demolition of the Hamilton Laundry site. I’ll have an update and potential timeline on that later this week.

_uacct = “UA-2976232-1”;
urchinTracker();