NJ developer taps Procida to find finances for stalled condos

New York /
May.May 17, 2010 07:06 PM
alternate textFrom left: William Procida and Dean Geibel

Commercial real estate firm William Procida Inc. has been retained by developer Dean Geibel, the founder of Metro Homes, for advice on finding potential investors for his stalled New Jersey condominium projects, Esperanza Asbury Park and Trump Plaza Jersey City.

Geibel and Procida are in discussions with various investors about potential deals to revive the stalled projects, which encountered difficulty in 2007 and 2008 amid softening demand in the real estate market and tight credit among financial institutions. Capital One Financial is the senior lender on both projects.

”Hopeful we we’ll be able to get a resolution that will involve Dean staying in and the bank getting out and some new capital coming in,” said Procida, whose firm is based in Englewood Cliffs, N.J.

In December 2007, Hoboken, N.J.-based Metro Homes halted construction on the Esperanza, a 224-unit condo in Aspery, NJ, amid softening demand and tighter credit in the multi-family market.

By 2008, a similar collapse took place, when the second half of The Trump Plaza Jersey City project stalled. The first phase of the Jersey City project was taken over by iStar Financial in 2009, and Capital One held a $24 million construction loan on the second tower, which was never completed.

Capital One officials were not immediately available for comment.

Geibel said he is optimistic that Procida can help find some new investors to get the Esperanza and second half of The Trump Plaza project completed.

“These are both great projects,” Geibel said. “We have an opportunity to work with our current lender and new capital source to bring them back and revive them.”

Procida last week announced a deal with lenders to find new investors for a $28 million mortgage loan at Five Franklin Place, the stalled Tribeca condo. The 55-unit residential building located at 369-371 Broadway, has been stalled since late 2008 when the developer reportedly defaulted on its construction loan and was placed on the market for a sale.


Related Articles

arrow_forward_ios
Loew’s Theatre in Jersey City (Google Maps)
Loew’s Theatre in Jersey City set for $72M rehab
Loew’s Theatre in Jersey City set for $72M rehab
Photos courtesy of HAP Investments
HAP Investments unveils new plans for Jersey City high-rise
HAP Investments unveils new plans for Jersey City high-rise
Gold Coast rush: NJ markets pick up in third quarter
Gold Coast rush: NJ markets pick up in third quarter
Gold Coast rush: NJ markets pick up in third quarter
Kushner Companies ends legal battle, resumes Jersey City project
Kushner Companies ends legal battle, resumes Jersey City project
Kushner Companies ends legal battle, resumes Jersey City project
30 Hudson Street in Jersey City and WeWork CEO Sandeep Mathrani (Wikipedia)
WeWork scores big lease at Goldman Sachs’ Jersey City office tower
WeWork scores big lease at Goldman Sachs’ Jersey City office tower
Loew’s Theater at 54 Journal Square Plaza in Jersey City and Jersey City Mayor Steve Fulop (Google Maps, Getty)
Jersey City moves forward with $40M renovation of Loew’s Theater
Jersey City moves forward with $40M renovation of Loew’s Theater
An aerial view and a rendering of The Element at 400 Claremont Avenue (Credit: Google Maps)
Jersey City mixed-use project lands $120M in financing
Jersey City mixed-use project lands $120M in financing
Airbnb lost by a landslide in Jersey City. What went wrong?
Airbnb lost by a landslide in Jersey City. What went wrong?
Airbnb lost by a landslide in Jersey City. What went wrong?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...