Developer sells new Hoboken apartment building to raise cash
Courtesy of NorthJersey.com

Tarragon Corp., a New York-based developer, has sold a new 217-unit apartment building in Hoboken to ING Clarion Partners, a real estate investment firm, for $116.2 million.

Along with other recent property sales, the deal helped Tarragon boost its liquidity and working capital, the company said.

The property, called 1000 Jefferson, is part of Tarragon's ambitious redevelopment of an eight-block section of northwest Hoboken, called Upper Grand.

The building, the fifth built by Tarragon in that neighborhood, was originally planned as a condominium. But when the housing market slowed, Tarragon re-positioned it as a rental.

Tarragon said it plans to continue building in the Upper Grand.

"With this successful transaction, Tarragon looks forward to continuing its role in the redevelopment of Hoboken, where we and our partners control almost 20 acres of land proposed for development of rental and for-sale housing, a public swimming pool and community center, parks, a multiscreen movie theater and retail uses," said William Rosato, Tarragon's president.

Tarragon recently sold its interests in six properties in Florida and South Carolina for $156 million, as part of a continuing effort to raise cash. Last summer, the company said it was in default on payments to lenders and vendors. Since then, the Tarragon has sold a number of properties and paid down debt, and several large lenders have reinstated their loans.

Along with the Hoboken development, Tarragon has several other projects in North Jersey, including two multifamily buildings in Palisades Park and a 16-story condo in Edgewater.

For its part, ING Clarion said it was optimistic about rental prospects for 1000 Jefferson.

"Hoboken continues to be highly attractive to urban professionals who want to work and live in the New York metropolitan area," said Brian Watkins, director at ING Clarion. "We are pleased to have the opportunity to acquire this building, and expect to see brisk demand for the rental units as they go onto the market."

The building has one-, two- and three-bedroom apartments with amenities that include granite kitchen countertops, washers and dryers and balconies. It also has a courtyard with a pool.

ING Clarion says demand for apartments will remain strong over the next several years as the children of the baby boom generation enter the workforce and move into rentals.

ING Clarion is part of the real estate arm of ING Group, a global financial institution of Dutch origin.