NJ CRE Leaders Struggle to Assess Sandy's Damage

HOBOKEN, NJ-New Jersey commercial real estate was still feeling around to check on its body parts at week’s end following super-storm Sandy – and many executives told GlobeSt.com they are simply not ready to make pronouncements about the future.

“Some of our members are themselves still in shelters,” Michael McGuinness, president of the industry association NAIOP-NJ said. “They don’t even have offices accessible.” McGuinness said NAIOP’s own offices in New Brunswick lacked Internet connection on Friday.

NAIOP is coordinating efforts to make space available for relief workers and distressed companies, using a telephone hot line: 732-729-9900 and email blasts posted through the national organization’s offices in Washington.

In The Meadowlands, where many buildings were still under water, the regional Chamber of Commerce was also operating a hotline - 201-528-2951 – and internet site (MRCbusinesshotline@meadowlands.org). “We know that some of the most distressed companies continue to struggle with basic communications, however,” said James Kirkos, the chamber CEO. “Right now, it may be our biggest problem.”

As for what is being communicated, Kirkos said he hears evidence that damage and power outages in the Meadowlands occurred in somewhat unpredictable and “patchy’ fashion. Some spots that traditionally take on the most tidal overflow suffered little damage to buildings; others had flooding where it had never before occurred:

• The first floor of the grandstand at the Meadowlands racetrack took on water for the first time in its history, according to Wayne Hasenbalg, president and CEO of the New Jersey Sports and Exposition Authority, which has its offices at the East Rutherford facility.
• In Secaucus, home of Hartz Mountain Industries and much of its huge mixed-use portfolio, some business centers lost power for two or three days, but flood damage was minimal.

This seemed to be true elsewhere, too:                                                  

In Hoboken, where Ironstate Development is based, flood devastation was national news. Yet Michael Barry, an Ironstate principal, said in an email to GlobeSt.com that its properties came through comparatively “fine.” The W Hoboken hotel at 225 River Street and the residential tower at 333 River Street had no water damage, and only “very minor” wind damage, as did the firm’s own office on Washington Street, Barry said.

The large Shipyard residential complex had “an inch or two of water in a few lobbies, but no apartment damage,” he said. In those buildings where the power remains out, back-up generators are powering emergency lighting in the corridors and lobbies.

Elsewhere across Ironstate’s portfolio, Barry reported in his Friday email that:

• Flood waters poured more than a foot of water into ground-floor retail shops and the fitness center at the Harrison Station complex in Harrison, halting a few inches below the lobby of the residential buildings.
• The 50 Columbus residential tower in Jersey City had a few inches of water encroach the lobby.
• In the Pier Village residential/retail/hotel development beside the shore in Long Branch, damage was limited to some sections of the roof and a few broken windows.

As for power, Barry reported this: “In Jersey City, power came back on Wednesday. In Harrison, electric was back this morning (Friday). In Hoboken, Long Branch and New Brunswick, we are still dark.”

McGuinness of NAIOP said the lack of power in Short Hills has forced postponement of the organization’s annual awards and Hall of Fame dinner – a decades-old industry tradition – which was supposed to take place tonight at the Hilton. As of Friday night, the hotel continued dark, and the dinner had been postponed to Nov. 26, the Monday after Thanksgiving.