JV Will Spend $150M to Build More Than 800 Apts.

Tarragon and Ursa expect to begin construction of the first phase, a total of 159 units, in June, with completion of that portion slated for August 2004. No timeline has been announced yet for the remaining phases.

At the same time, Tarragon and Ursa are teaming up with Frank Raia, an individual, locally based developer, for a second residential complex here. The trio has received preferred-developer designation from the Hoboken city council and has just submitted plans for a project that would combine 291 luxury condos and 87 affordable rental units covering two additional city blocks.

Both of the projects are located in this Hudson waterfront city's Northwest Development Zone and will cost a combined $150 million to build. As part of its development agreement with the city, Tarragon will contribute a total of $1 million toward affordable-housing development and parks within the community.

In terms of design, both projects will be made up of five residential floors on top of ground-level retail space and enclosed parking. Other amenities will include a landscaped courtyard and a health club. The new Bergen-Hudson Light Rail transit system will have one of its stops near the two properties.

"To assure that these new buildings contribute to the creation of a vibrant neighborhood and street life, we are incorporating street-level entrances and functional retail space," explains Tarragon president and CEO William S. Friedman. "We are especially pleased that the support from the City of Hoboken will make it possible for us to include 87 affordable-rental apartments."

Tarragon currently controls 16,000 apartment units and 1.5 million sf of commercial space valued at more than $1 billion. Most of the firm's assets are located in the Connecticut, Florida, Texas and California markets.