After living in Hoboken for seven years, Heath Waldorf moved to Morristown a little over a year ago to be closer to his office in Parsippany. But he and his fiancee, Nicole Lelchuk, didn't like being so far from Manhattan, where she works and where both like to go out in the evenings with friends. "We missed having a social life," said Waldorf, 30, a bird-control expert. Living in Morristown, they wouldn't get home till almost midnight if they went out to dinner in New York.
So Waldorf and Lelchuk have returned to Hoboken, renting a two-bedroom, two-bath apartment in a new luxury building called 1000 Jefferson. The 217-unit building, which includes a courtyard with a pool, is the fifth building constructed by New York-based Tarragon Corp. as part of a sweeping redevelopment that aims to convert northwest Hoboken into a residential neighborhood called Upper Grand. The redevelopment is Tarragon's largest project. Construction, which started four years ago, is scheduled to span more than a decade.
Tarragon plans a dozen residential buildings in the area, a formerly blighted remnant of Hoboken's industrial past. These days, new condos and apartments are interspersed with weed-covered lots and old warehouses and factories. The area's redevelopment has been boosted by the Bergen-Hudson Light Rail Line, which runs nearby and brings commuters to the PATH trains in southern Hoboken.
Tarragon first planned 1000 Jefferson as a condominium, like many of its buildings in the area. But this year, as home sales slowed, Tarragon decided to offer the building as rentals instead. That suits Waldorf and Lelchuk, who, like many people, are reluctant to buy because they think housing prices may fall further. Rents range from $1,900 for one-bedrooms to $4,500 for three-bedroom units. Parking, on the ground floor, costs $200 a month. The building, which opened in mid-October, is about half leased.
The real estate downturn has hit Tarragon hard, especially in Florida, one of the worst markets in the nation and one where Tarragon has a large presence. In August, Tarragon said it was in default on payments to lenders and vendors. Since then, the company has sold properties in Florida to free up cash and pay down debt, and several large lenders have reinstated their loans to Tarragon. The company has said that its projects in New Jersey are profitable, and it has begun construction on another building near 1000 Jefferson.
Because the building was planned as a condo, 1000 Jefferson includes upscale touches that aren't always available in rentals. The floors are parquet and the kitchens have cherry cabinets, ceramic tile floors and granite countertops. Units have washers and dryers, as well as walk-in closets. Some of the units have balconies that look over an interior courtyard containing a pool. The building also has a rooftop deck with views of the New York skyline.
The six-story building includes retail space for a few stores and is across the street from a supermarket. That was another selling point for Waldorf and Lelchuk. "We enjoy cooking," Waldorf said. "We can stop off and get fresh food every day." In addition, the couple liked the amenities of a new building -- including having two bathrooms. "We have determined that the key to happiness is separate bathrooms," Waldorf said. Waldorf and Lelchuk are like many of the tenants at 1000 Jefferson, who tend to be professionals under 40, many of them working in New York, according to property manager Shay Bell. Waldorf and Lelchuk also may take advantage of a Tarragon program that gives tenants credit from their rent checks toward future purchases of Tarragon homes.
Source: NorthJersey.com