What the Woodbridge, NJ-based Continental Properties has in mind for the 3.2-acre hillside tract is a luxury townhouse community, according to Steven Fisch, a partner in the company. "The hospital had been looking for as buyer for nearly three years," Fisch says.

Continental intends to build 19 townhomes ranging up to 3,400 sf of living space. Site work is expected to begin later this month, and the vacant and deteriorating hospital building will be razed. Local officials had earlier designated the site as an area in need of redevelopment.

The yet-to-be-named community will have federal-style exteriors "to blend with the surrounding residential neighborhood," says Continental vice president Howard S. Rappaport.

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