Hackensack Apartment Project Scaled Down Under New Developer

The National Realty Investment Advisors debacle is costing Hackensack about a hundred homes.

A joint venture between Canoe Brook Development and Woodmont Properties is planning a six-story, 300-unit development with a retail component at 360 Main Street, NorthJersey.com reported. That’s 100 fewer than NRIA planned before it was accused of fraud and filed for bankruptcy.

A bankruptcy court judge transferred the sale of the building to the joint venture, CBD Hackensack Developer, earlier this month. The judge gave Canoe Brook and Woodmont 60 days to start discussions with city officials and environmental and engineering reviews.

NRIA was planning a 14-story, 400-unit project at the former YMCA site after the city council approved a redevelopment plan for the area. The project would have included an auto body repair shop and a two-story law office on smaller lots, along with a 6,000-square-foot public plaza. Amenities for residents included a rooftop pool, a deck with a dog park, workspaces, a lounge and a golf simulator.

That came to a halt in June, when the New Jersey Bureau of Securities issued a cease-and-desist letter against NRIA, accusing it of fraudulently selling at least $630 million in securities.

The state attorney general said the company sold membership in its NRIA Fund to at least 1,800 investors, guaranteeing returns of 12 to 21 percent. Authorities allege the firm made false statements and omitted information from regulatory filings.

Earlier that month, NRIA filed for bankruptcy protection.

At the time, NRIA had yet to submit formal plans for the Hackensack project to the city planning board. The company intended to complete ongoing projects before selling them, but the reverse is happening in this case.

An 18-count indictment against two NRIA executives was unsealed in October. The case remains ongoing.

— Holden Walter-Warner