Tag Archives: Diversified Communities

Condos, Downtown, Foreclosure

Riverwalk not the only project Diversified ditched

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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.”

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Uncategorized

Station stairs slated for replacement this month

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NJ Transit plans to replace the staircase on the east side of the eastbound platform this month. The stairs, at the corner of Irving and East Cherry streets, are expected to reopen Dec. 4, according to this advisory issued last month.

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Here’s a nj.com story on the foreclosures at Riverwalk that we wrote about last month. It looks as though the developer, Parsippany-based Diversified Communities, defaulted on an $11.8-million loan from Bank of America.

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Foreclosure

Foreclosures begin on final 19 Riverwalk units

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Bank of America has started to foreclose on the 19 remaining unsold units at Riverwalk, said Redevelopment Agency Attorney Frank Regan at the agency’s meeting last week. The city also has begun the process on seven of those units for failing to pay property taxes, according to City Administrator and Redevelopment Director Peter Pelissier.

Parsippany-based Diversified Communities built the 86 Riverwalk townhomes off East Milton Avenue several years ago and at one point had considered plans for another three dozen or so on the neighboring Kings Inn property. The last Riverwalk unit to sell (that I could find) went for $420,000 in the fourth quarter of 2008.

The city still is pursuing the developers for failure to complete improvements, including street paving and striping. Regan said he was contacted by an attorney for the homeowners’ association to determine whether the improvements could be completed and paid through a mortgage commitment or if the city could complete the improvements and assess the units.

The city and county did some paving work on Essex and Johnson streets in the spring and will pursue the developer in court for reimbursement, but other work remains, such as drainage.

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Since we’re on the topic of foreclosure, here’s a Wall Street Journal story from yesterday about foreclosures hitting top-tier markets.

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City to pursue developer for improvements

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The city is preparing a complaint against the developers of Riverwalk to compel them to complete almost a half-million dollars in improvements or recoup money to do the improvements on its own.

During his report at the last Redevelopment Agency meeting, RRA attorney Frank Regan said officials have met with the condo board and management company at Riverwalk to talk about a number of concerns, including various improvements that have not been completed.

The biggest issue, according to Regan, has been the failure of Diversified Communities to complete more than $400,000 in on- and off-site improvements, with some streets still not permanently paved, leaving sewer manhole covers exposed on Hancock and Essex streets.

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Downtown, library

Town Center scaling back, has new developer

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The Town Center project, originally proposed 18 months ago as a massive residential-retail plan for property around City Hall, has a new developer and scaled-back plans.

Continue reading Town Center scaling back, has new developer →

hotels, motels, Rahway, Routes 1/9

A Super 8 fit for a king

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The Kings Inn — the motel on Routes 1&9 South with the distinctive tower that once appeared in a popular early ’90s rap video (look for it at about 1:26 of 4:26) — will become a Super 8 and part of the Wyndham hotel chain after renovations and an addition.

Preliminary plans presented before the Redevelopment Agency at its April 9 meeting indicated the structure would be renovated to hold 44 rooms — eight fewer than the current 52 — with a four-story addition that would include another 43 rooms (for total of 87), along with an area connecting the two. The tower will not remain.

Diversified Communities, developers of the adjacent Riverwalk townhouses, had been in discussions to build another 36 to 40 units on the motel property, but those plans eventually proved too costly because of environmental issues.

The Kings Inn, which was raided by police about a year ago (.pdf), is among a number of typical Route 1 motels getting a makeover or replaced altogether. The Best Western on Paterson Street was built a few years ago, and a new Sleep Inn (.pdf) is planned on the adjacent vacant lot which used to be home to the Village Inn.

Thanks to The Contrarian for info on the Kings Inn’s music video history, and some more links to other police activity at the motel.

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Town Center plans in flux?

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The Town Center project planned for the City Hall area might change developers and ultimately could be considered for an office complex.

Diversified Communities and DeBartolo Development are not together anymore, City Administrator/Redevelopment Director Peter Pelissier said during last month’s Redevelopment Agency meeting, adding that the DeBartolo firm believes the original concept plan should be reviewed given the retail market. Two phone calls to Debartolo were not returned.

Rahway Redevelopment Commissioner Timothy Nash suggested putting out a Request For Prosposals (RFP) to see who else might be interested.

“If worse comes to worse,” an office complex could be considered, Pelissier said, but has declined to elaborate.

Richard Weissman of Diversified Communities — developers of nearby Riverwalk — declined to comment because he was “in the middle of resolution of issues.” Asked for a timeline of when resolution might occur, Weissman said in an email: “It has many moving parts, including in big part the market conditions.”

Diversified Communities made a presentation to City Council in February 2007, proposing a mixed-use project of 175,000 square feet of retail, a 125-room hotel, 375 units of housing (1/3 for sale, 2/3 rentals), along with parking decks totaling 1,300 spaces. Diversified, developers of Riverwalk, was named redeveloper last March and purchased the property from the Redevelopment Agency last summer for $725,000. In October, it signed a deal to with DeBartolo.

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