NJ developer taps Procida to find finances for stalled condos
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.