Given its shopping center track record, it would seem likely that Developers Diversified would turn the undeveloped site into a shopping complex. Company officials have not made public their plans for the site, however, and observers speculate that a mixed-use complex combining retail and office might be in the cards. For one thing, the property has approvals already in place for up to one million sf of office space.
The site is part of a larger corridor along Route 66, a state highway, which has remained largely undeveloped because of access problems. However, the New Jersey Department of Transportation recently decided to spend more than $3.5 million to build an access ramp. Construction is expected to begin on the overpass by the end of next year, and the DOT's decision to move ahead with the infrastructure improvements has sparked new interest from developers.
For openers, Hovnanian Industries, which owns a small office building nearby, has already told local officials that they want to add at least two more office properties to the site, along with a hotel and some limited retail. The Hovnanian site is about the same size as the one just purchased by Developers Diversified.
"We're taking a look at our options," according to a Developers Diversified spokesman. "Office and retail, or perhaps a combination of the two uses, are possibilities."
Among the attractions for the REIT is the site's relative proximity to the Garden State Parkway, as well as its location near the Jersey Shore. The company's nearest property is on Route 36, about 10 miles to the north in Eatontown. There, Developers Diversified owns a strip shopping complex anchored by Circuit City and Bed, Bath & Beyond.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.