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Our proven track record for navigating challenges to produce positive outcomes.
Condominium conversion project in Jersey City, NJ
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Project Overview
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A landmark factory in Jersey City, NJ, which had been constructed in 1847 and renovated into rental apartments
in 1992, was to be converted again into condominiums. The project would immediately have two highly saleable
advantages – its historic façade and brickwork was highly attractive and its location was excellent. Just two
blocks from the Grove Street PATH Station, the project’s location provided fast, inexpensive public transit into
New York City.
These strengths presented us with an excellent opportunity to create a desirable alternative both to the Manhattan
market and to other high-priced communities on the Gold Coast. A wide variety of unit types would be available,
while price points – including highly attractive entry level prices – would be lower than other new developments
on the market. If positioned properly, the project would be able to serve several underserved segments of the market.
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The Challenge
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The project encompassed a vast complex of 5 buildings, which the previous owner had converted into 467
units with more than 350 different floor plan variations, some of which were sub-terrain. The key question
for marketing this development would be how to attract buyers to its small and less desirable units
at a time of weakening market conditions. In addition to this challenge, onsite parking accommodated
the needs of only 75% of the units, while competing developments offered a higher ratio. At the point
we joined the development team, the recreational amenity package was still undefined and would be undeliverable
until after the homes were sold out.
Another, more serious obstacle was overcoming the building’s poor reputation as a rental community.
The previous owner had created an extremely hostile tenant environment by not properly maintaining the
property. In fact, disgruntled tenants went as far as posting aggressive messages in their windows that
turned the project’s tagline, “unique meets chic” into warnings of filth and danger.
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Strategy
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We quickly recognized that the best way to achieve sales for the small units, which would be without
onsite parking, would be highly competitive pricing. A comprehensive pricing analysis was performed
on a floor plan by floor plan basis to arrive at a pricing structure that would create the greatest
value given the marketplace.
To attract city-dwellers, we recommended an innovative approach: eliminate the need for car ownership
by providing shuttle service to the Grove Street PATH Station. Then, to solve the still unresolved recreational
amenities issue, we recommended a $1 million “assurance bond,” which would be spent at the discretion
of the future condominium association.
To combat the negative perception of the complex, a legacy of the apartment ownership era, we developed
a strong marketing and public relations campaign that promoted the historic nature of the building in
tandem with its close proximity to New York.
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Results
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Our sales and marketing approach has enabled the project to outperform its targeted Manhattan and Gold
Coast-based competitors. At an average pace of 17 condominium units per month, the project is selling
at a rate more than triple the national average.
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