Real Estate Central

Sales Can Move Ahead for Spectacular NJ High-Rises Overlooking Manhattan

HACKENSACK, N.J., July 3 /PRNewswire/ — When the original investment
group recalled its loan a half year ahead of schedule because of internal
policy changes, Aurora Development Partners, LLC’s Joint Venture Partners;
Brian M. Stolar of The Pinnacle Companies and Alan Litt of Kohl Partners
needed a bridge loan to continue marketing and sales and to complete site
work for Aurora Over the Hudson in Cliffside Park, NJ. In just a short
period, the developers already had presold 22 units in twin residential
condominium towers that will boast spectacular views of the New York
skyline. Without immediate financing, they would need to inform buyers –
perhaps losing them — and halt additional sales commitments.

Hackensack-based direct lender 24 Capital provided these funds — a
record amount of $27.5 million in record closing time — and the partners
can now move ahead on their plans. When completed, Aurora Over the Hudson
will hold 131 luxurious condos — ranging from 1,872 sq. ft. to 3,724 sq.
ft. — with two underground parking spaces per home on a 3.32 acre land
tract. The developers had already leveled the few buildings that stood on
the land and the tract is nearly ready for construction.

“This site is located in the state’s most desirable area, often
referred to as New Jersey’s Gold Coast, where despite the general slowing
of the market, the pace of project sales remains strong,” says Gregg
Wolfer, president of 24 Capital. He points out that a nearby residential
tower is almost sold out, leaving a ready market for Aurora Over the
Hudson.

“For this loan, the collateral’s ‘as is’ market value easily supported
the loan,” Wolfer says, “and the area’s proximity to New York City and
corporate centers in the tri-state area are not going to change.
Considering that Aurora already has contracted with future residents, the
prospects for successful development are excellent, even in the current
environment.”

“24 Capital felt that the risk was definitely worth taking, given the
figures,” Wolfer says. “It is unfortunate that the current lending climate
increasingly forces reputable developers and other borrowers to face
scenarios where investors abruptly cut off promised funds or traditional
lenders refuse to buy into a strong vision with strong collateral,
especially over the past year.

“At 24 Capital, our reputation depends on the premise that we look at
each borrowing company or individual as just that — individual. Our
extensive research team pulls together all relevant information and our
financial team puts together workable packages that allow projects to move
forward without interruption. And that,” he says, “is why we called on our
resources to make this loan. In this case,” he adds, “The Pinnacle
Companies and notably Mr. Stolar has been building residential communities,
super-upscale high-rise residences, and custom homes in suburban and urban
settings for more than 20 years. Kohl Partners founded by Leonard Kohl and
headed up by Alan Litt have built numerous projects for themselves and for
others as a highly regarded general contractor. Their solid reputation
precedes them in whatever they undertake and we are happy to have them as
part of our client roster.”

According to Brian M. Stolar, President and CEO of The Pinnacle
Companies, “Aurora Over the Hudson is a super-luxury residential project
designed by internationally regarded Philippe Starck and it will be The
premier building in the State of New Jersey. We needed interim funding
while we complete our pre-sales and with over $40 million in sales already,
24 Capital’s funding will give us the capital to complete our additional
sales required for a construction loan.”

Where traditional lenders continue to buy into the concept of a
declining economy and shield themselves from funding borrowers, 24 Capital
recognizes the value of fueling people and projects that keep the economy
moving. Says Wolfer, “When we have confidence in what our borrowers
present, our mission is to move quickly to back up our financial
commitment.”

Traditional lenders often drag out the application process for months
and then disappoint borrowers with turndowns despite solid collateral. 24
Capital is known for moving confidently and able to lend up to 75% of
collateral value, sometimes completing the application process within 24
hours and closing in five days. In addition to new development and
construction, 24 Capital provides direct loans for the spectrum of
projects, including turnarounds, bankruptcies, foreclosures, and property
acquisition for clients like shopping centers, multifamily buildings,
office centers, hotels, and more. http://www.24capital.com

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[Via Real Estate Newswire]