Mixed-use project repositioning (Rutherford, New Jersey)
Assignment Retained by a private bank, with over $1.2 billion in assets, to assist it with a partially completed, over budget, mixed-use project that included a mid-rise rental apartment and office buildings, a large parking garage and a retail space.
Scope of Work The assignment involved replacing the general contractor and subcontractors, value engineering the structures, completing the remaining partially completed construction components and, due to the high basis in the project, repositioning the residential units as condominiums and selling-out the unit portfolio.Results Pinnacle successfully sold out the condominium units in the project thereby reducing the lenders basis in the project. Pinnacle also reconfigured the plans for the retail space making it more rentable.
Kara Homes-related project advisory (various New Jersey)
Assignment Retained to advise a hedge fund and their local acquisition partner in regards to the construction, marketing and sales of the Kara Homes-related New Jersey projects acquired from the Bankruptcy Court
Scope of Work The assignment involved market analysis, valuation/feasibility analysis, and the review of legal documentation and construction status.Results The extensive portfolio was located throughout New Jersey. Pinnacle reviewed each market, set new pricing and implemented new and cost effective marketing programs, resulting in a substantial increase in sales. Pinnacle also reviewed, redesigned and put in place a construction program for the projects going forward. Property types included partially completed urban in-fill condominium and mixed-use developments, land and single-family suburban home projects.
Redesign and Repositioning of a to-be–built luxury condominium development (Bergen County, New Jersey) Assignment Retained by an equity investment firm owner of a tract of land approved for luxury condominium development. The project is not viable in the current market. Pinnacle was retained to identify and implement strategic alternatives.
Scope of Work Pinnacle is redesigning and repositioning the project as a multi-phase, rental apartment community and is processing the project through the entitlement for rental use. Pinnacle has also designed a second phase that will provide the most affordable market rate condominium homes in Bergen County.Results In the current market, the value is worth less than 50% of the amount invested. Pinnacle’s plan should permit the recovery of the majority of the investor’s capital as well as provide for continuing growth of the investment.