JERSEY CITY-Four single-purpose corporations made up of 14 large and small investors in the US and overseas now own 107 condominium residential units in a half-dozen buildings in this city's revitalized Journal Square area. The complex deal was put together by Amir Yerushalmi, president, and Chen Shoshani, vice president, of Vision Development Group, New York City.
The seller is the condominium sponsor, HROCOR Fair Realty of Astoria, NY. Financing was provided by Commerce Bank of New York and Commercebank, a separate institution based in South Florida. Attorney Kammerman Associates represented Vision Group in the four-month due diligence and closing process.
Under the terms of the sale arrangement, Vision will share in the properties' rental and sales income in return for overseeing the ongoing transactions and subsequent day-to-day property management, including vacating tenants and renovating and selling finished units. The units as a package sold for $11 million, and Vision anticipates a total sale-out price of $20 million in what is expected to be a two-year conversion project.
"This is a wonderful opportunity for both Vision and our investors," says Yerushalmi. "Jersey City, with its transportation infrastructure, neighborhoods and services, is ripe for investment and residential growth. We have bought into some excellent buildings and, through our percentage of ownership, will have strong say in how the buildings are run."
The purchased units range from studios to three bedrooms in those six buildings. Most of them are located along this city's Harrison Ave, near Lincoln Park, one of the largest parks in the area.
Vision has been previously active in the local market through its acquisition, renovation and sale of 53 units in the Fairmount Condominium, and in investments in Franklin Plaza and Palisades Place Condominiums in Jersey City Heights. Vision has similar investments in other parts of New Jersey and New York including World Wide Plaza in Manhattan and Parkchester in the Bronx. The company is currently developing Greenpoint Lofts, the first commercial condominium in Brooklyn.
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