Redevelopment Will Include 50,000 SF of Retail, 250 Homes

"The trends in the economy, as well as in the retail environment and the competitive nature of our surroundings, have made it so we can no longer survive in our current form," Epstein's CFO William Levine said at a press conference last summer. "We have to make some changes."

What will emerge on the downtown tract after the 111,328-sf, four-story store is razed, is a combination of 250 residential units--a blend of condos, townhouses, rental apartments and lofts in three different buildings--as well as 50,000-sf of street-level retail space. The project also calls for a 650-car, five-level parking facility that will be owned and operated by the Morristown Municipal Parking Authority. Estimates are that the whole endeavor will cost in the neighborhood of $70 million to build.

"This new project will reflect the character of Morristown while creating much-needed housing, retail space and parking for the area," says Epstein's president Michael Levine.

Brian M. Stolar, president of Pinnacle Ltd., calls the project "one of the most extraordinary urban initiatives under way in New Jersey." His company's role in the redevelopment will be carried out by its Pinnacle Downtown division, which recently bought a majority interest in the Maxwell House coffee manufacturing site in Hoboken, NJ and is partnering up with Toll Brothers to redevelop the property with a similar mix (see earlier story).

The existing Epstein's department store was actually nine separate buildings constructed between 1890 and 1955, but subsequently combined and modernized over the years. The developers expect to complete all approvals by the end of this year, during which time the department store will remain open. Construction is expected to begin in early 2005, with completion anticipated for late 2006.