$116M Hoboken Sale Marks Return to Business as Usual for Tarragon
- Feb 29, 2008
Tarragon Corp. is moving on from a year of debt reduction and selling inventory in struggling housing markets, and is ready to get back into the acquisition business. This morning the mixed-use and residential developer announced that it had sold a new high-end apartment complex in Hoboken, N.J., to an institutional investor for $116.2 million. “I think this transaction marks a return to business as usual,” William Friedman, the company’s chairman & CEO, told CPN this morning. In contrast to some of the properties it has sold to pay down debts, Tarragon developed the 217-unit Hoboken complex with the intention of selling it, Friedman explained. He did not disclose the buyer’s identity but said the new owner is a group of pension funds. Since last fall, Tarragon has sold a steady stream of properties in distressed markets in a bid to improve liquidity. Last month, the company revealed that it had completed the $159 million sale of six properties in Florida and South Carolina to affiliates of Northland Investment Corp. Last November, the firm said it had realized $89.6 million from the sale of residential and commercial properties in Ocala, Fla., Tampa, Dallas, Texas and New Jersey, plus a land development project in Orlando. Now that Tarragon has regained more solid financial footing, the firm will continue to be a buyer of assets as well as a seller, Friedman said. All told, Tarragon has about 3,000 residential units in development or under construction, he reported. The company is focusing primarily on four markets: Nashville, Houston, Hartford, Conn., and Hoboken.