A developer’s bankruptcy and alleged fraud is imperiling a 14-story, 400-unit project in Hackensack.
The National Realty Investment Advisors project at 360 Main Street, which once housed a YMCA, is on pause, NorthJersey.com reported. The Hackensack City Council in May approved a redevelopment plan that included ground floor retail.
It was also to have an auto body repair shop and a two-story law office on smaller lots, as well as a 6,000-square-foot public plaza with sculptures and outdoor seating. A construction report listed such amenities as a rooftop pool, a deck with a dog park, workspaces, residents’ lounge and golf simulator.
But NRIA’s problems may be doing lasting damage to the project. Last week, the New Jersey Bureau of Securities issued a cease-and-desist order against the company after determining it fraudulently sold at least $630 million in securities from 2018 through this year.
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According to the state attorney general, the company sold membership units in its NRIA Fund to at least 1,800 investors. It advertised guaranteed returns of 12 to 21 percent, but authorities alleged the firm made false statements and omitted key information from regulatory filings.
Earlier in June, the firm filed for Chapter 11 protection. NRIA listed assets worth between $50 million and $100 million and liabilities between $500 million and $1 billion.
Although the project is paused, it isn’t dead. An architect with JCA Group, the building’s designer, told the publication it should move forward after a bankruptcy judge approves a reorganization of NRIA. An attorney representing the firm added that the company wishes to complete ongoing projects and then sell them.
NRIA has yet to file site plans with the city planning board.
“City officials are aware of the state’s filing as well as other matters that have been publicly reported, and these new circumstances will be part of the city’s evaluation if or when NRIA files its formal application to be designated as a redeveloper, which it has not yet done,” said a city spokesperson.
[NorthJersey.com] — Holden Walter-Warner