Developer seeking deals along Hudson
Plans residential buildings

Originally appeared in the Star Ledger on December 14, 2005

BY MATTHEW FUTTERMAN

Hartz Mountain Industries is pursuing a series of moves on the Hudson River waterfront to take advantage of the simmering residential real estate market on New Jersey's so-called Gold Coast, executives with knowledge of the deals said.

In recent weeks, the Secaucus-based company has closed in on a deal with Roseland Property for a major residential building at one of Hartz' sites in Jersey City. Hartz is also seeking deals for another residential building in Jersey City and one at a site near the Lincoln Tunnel in Weehawken.

The deals come at a time when the market for high-end residential real estate along the Hudson River has never been hotter. Last month, Donald Trump tossed his name in, allowing developer Dean Geibel to market two condominium towers under the Trump name, furthering the Gold Coast's reputation as New York's "sixth borough."

Hartz President Emanuel Stern declined to discuss the deals, though Carl Goldberg, a principal with Roseland Property in Short Hills confirmed the talks with Hartz.

"We are in negotiations with Hartz for a residential building in Jersey City," Goldberg said. "I am aware they are pursuing deals on the two other parcels, but we are only involved in the one Jersey City site."

For Hartz, signing deals with residential builders represents an opportunity to collect tens of millions of dollars in development fees without the risk that comes with diving into unfamiliar territory. Hartz owns nearly 40 million square feet of property in New Jersey and New York, including the Mill Creek Mall in Secaucus and Soho Grand and Tribeca Grand hotels in New York.

However, Hartz specializes in industrial, commercial and hotel space, and most successful developers make a habit of sticking to the parts of the business they know best.

Roseland, on the other hand, has been one of the state's top residential builders, and already has built hundreds of units on the Hudson waterfront at Port Imperial. The company, based in Short Hills, describes itself as the "premier urban redeveloper in the Northeast."

Stern, meanwhile, has shown an ability to time the real estate market on the waterfront as well as anyone. In 1998 and 1999, after years of inactivity in that area, Hartz built two office towers at 70 and 90 Hudson St. in Jersey City before any tenants had committed to the properties. Both buildings were fully leased before construction was complete.

That experience helped convince Stern that Jersey City was a market worth investing in, especially with prices for medium-size, two-bedroom apartments selling for $600,000 to $800,000.

"Jersey City has always proven itself to be robust in whatever market it has entered," Stern said during an interview in September after Trump and Geibel announced plans for 50- and 55-story luxury towers. "It's only natural that there should be a condominium element there."

The partnership between Hartz and Roseland is ironic since Stern has waged a two-year battle against the New Jersey Sports and Exposition Authority and the $1.3 billion Xanadu retail and entertainment center. Goldberg is the sports authority's chairman.

However, the two men have always respected each other professionally, and Stern also has a relationship with Marshall Tycher, Roseland's top partner.