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December 23, 2004
ASBURY PARTNERS ACQUIRES CASINO, POWER PLANT AND DEAL LAKE DRIVE TRIANGLE FROM CITY OF ASBURY PARK
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In keeping with its commitment to support affordable housing
and community initiatives in Asbury Park, New Jersey, Asbury Partners, LLC presented
the City Council on November 5 with a $750,000 check, representing the second
installment of a planned $7 million contribution. To date, the firm has donated
$1 million and expects to make a third $1 million payment during 2004. Pictured
from left to right are: Larry Fishman, chief operating officer of Asbury Partners;
Guy McCombs III, community liaison for Asbury Partners; Terence Reidy, Asbury
Park city manager; John Hamilton Jr., Asbury Park councilman; John Loffredo,
Asbury Park councilman; Kate Mellina, Asbury Park councilwoman; and James Bruno,
deputy mayor of Asbury Park.
In another major step forward for the Oceanfront Asbury waterfront redevelopment,
Asbury Partners has acquired three key sites in Asbury Park, New Jersey, announced
Larry Fishman, chief operating officer. As part of its agreement as master developer
of the 56-acre waterfront redevelopment in Asbury Park, the company will acquire
the Power Plant and Casino buildings and a half-acre parcel known as the Deal
Lake Drive Triangle on December 23, 2004 for a purchase price of $1.9 million.
The firm will renovate the structures and improve the land, ultimately investing
an additional $36.1 million in the property.
RETURN TO GLORY
Asbury Partners purchased the Power Plant and Casino for $1.5 million and committed
to rehabilitate the historic properties to NJSHPO standards. The work, estimated
at $33.6 million, will include demolishing what remains on the eastern end of
the Casino at its old arena section and rebuilding a new structure of the same
size and style as the original. Many components of the building have been preserved
and will be incorporated in the new construction. Public beach access through
the Casino's arcade will be maintained.
"The Casino and Power Plant are among Asbury Park's most recognizable buildings,
and we will restore them to their former glory," Fishman said. "We hope to partner
with an experienced retail firm similar to what has been occurring in the Inner
Harbor of Baltimore or Virginia Beach and work with them in the eventual transformation
of the waterfront to a year-round retail experience."
Currently, the renovation plans are in the design phase and will be submitted
to NJSHPO and DEP for review. The studies and permitting component of the project
is expected to take up to 12 to 18 months. According to Fishman, one interesting
component of the Casino and Power Plant purchase involved the use of $750,000
in credits from the City, earned during the boardwalk reconstruction completed
last spring. Asbury Partners financed all but $1 million dollars of the $5.8
million boardwalk redevelopment, which came from the State's Green Acres funds.
The firm directly contributed $1.8 million to the project and loaned the City
the monies to complete the balance of the work.
"The repayment of the loan by the city is being made, without interest, in the
form of credits toward land purchases within the redevelopment area," Fishman
explained. "The structure of this deal demonstrates the complexity of many aspects
of this redevelopment, our firm's flexibility, and the true public/private partnership
at work."
A BEACHFRONT HAVEN
Asbury Partners purchased the Triangle beachfront parcel for an initial sale
price of $400,000 and has committed to complete approximately $2.5 million in
improvements. The final sale price for the Triangle will be determined by a third
appraisal of the property within the next 60 to 90 days.
"The site has been valued differently by two independent appraisers for Asbury
Partners and the City of Asbury Park," Fishman explained. "These two appraisers
will select a third to come up with a number based on the parameters of the Redeveloper's
Agreement. That will be the final price, at which time we will pay a balance
or receive a credit on this initial investment."
As outlined in the Oceanfront Asbury waterfront redevelopment plan, the property
is slated for the future development of 22 condominiums and a single, mid-rise
structure with approximately 60 units. According to Fishman, the Deal Lake Drive
Triangle also represents one of Oceanfront Asbury's most exciting recreational
components for city residents and visitors.
As part of its commitment, the firm will create a meandering boardwalk between
Seventh Avenue and Deal Lake; expand the boardwalk between Sixth and Seventh
Avenues; and install decorative lighting, four gazebos and 60 new benches on
the boardwalk. Additionally, as part of Oceanfront Asbury's CAFRA agreement,
Asbury Partners will improve beach amenities and access there by adding a 113-space,
city-owned parking lot and fish-cleaning stations with running water. The firm
will also incorporate extensive landscaping and create naturalistic dunes with
native plantings.
"It will be a haven for fisherman, surfers and environmentalists," Fishman noted. "Asbury
Park has some of the most breathtaking natural resources in New Jersey, and the
Deal Lake Drive site will help to preserve and showcase its beauty."
PROGRESS CONTINUES ON COURSE
"The acquisition of the Casino, Power Plant and the Deal Lake Drive Triangle
are significant steps in the rebirth of Asbury Park," Fishman said. "It is gratifying
to continue our move forward as we see the positive results of all that we have
accomplished to date - from the clean beaches, to the beautiful new boardwalk,
to increasing property values and a downtown that is experiencing a true renaissance.
The beneficial impact of Oceanfront Asbury is being felt throughout the City,
and we are proud of all we have accomplished in such a short time."
Elsewhere within Oceanfront Asbury, construction is progressing on two residential
sites, featuring 157 units being developed by Paramount Homes and 146 units being
developed by Westminster Communities. Metro Homes' design to build 224 units
is currently before the City Council.
Additionally, final plans for $50 million in infrastructure improvements are
expected to be announced and launched officially in January. Asbury Partners
will provide all new or upgraded services for the area, including storm and sanitary
sewer systems, electric, telephone and cable wiring; road paving and landscaping.
Already, work has begun on the upgrading of water lines to serve the redevelopment
area.
According to Fishman, the success of Oceanfront Asbury to date can be attributed
directly to the care and expertise that went into the creation of the project's
master plan. "Eighteen months, hundreds of man hours, and the careful balance
of public and private interests went into creating the award-winning plan that
is directing the progress of Oceanfront Asbury," he said. "We continue to move
forward with key elements of the project, and with every milestone we are seeing
this extraordinary vision evolve into reality."
Oceanfront Asbury incorporates residential, retail and entertainment components,
along with municipal services and urban empowerment priorities. Expected to be
completed in phases over 10 years, it ultimately will produce an estimated $1.25
billion in total economic redevelopment and restore the City's historic stature
as the "Jewel of the Jersey Shore." Project planner Clarke Caton Hintz/Ehrenkrantz
Eckstut & Kuhn Architects a joint venture (CCH/EE&K) created its award-winning
design.
A joint venture of MD Sass Municipal Finance Partners III, LLC, and Ocean Front
Acquisitions, LLC, Asbury Partners was created for the long-term commitment to
the redevelopment of Asbury Park. Its principals have experience in finance,
marketing, acquisitions, development and repositioning of real estate throughout
New Jersey. Selected as master developer for Oceanfront Asbury in August 2001,
the firm has invested more than $30 million in the project to date.
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