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Key redevelopment players Madison Marquette and iStar Financial have bound themselves together more closely as a result of a deal the two announced on Thursday.

Under the agreement, two undeveloped tracts held by Madison Marquette will be transferred to Asbury Partners, which is currently owned by iStar, according to iStar’s vice president of land Brian Cheripka [right]. In exchange, Madison Marquette will get a minority interest in Asbury Partners, he said.

As a result, iStar and Madison Marquette will be co-owners of Asbury Partners — the master redeveloper for the whole waterfront redevelopment area. As majority owner, iStar will still have the controlling stake.

Cheripka said that “the deal is closed” and does not require the approval of the city because it’s a “transfer of equity interest”.

The tracts to be transferred to the new partnership of Asbury Partners total 5.7 acres, Cheripka said. Both are near the Wesley Grove townhouses, one being the triangular tract between Cookman and Asbury Avenues and the other a rectangular lot filled with wooden stumps.

While Madison Marquette will continue to be the lead boardwalk redeveloper, this agreement now expands its role into the full waterfront redevelopment area as the minority partner in Asbury Partners.

A press release jointly issued by Madison Marquette and iStar made it clear the two entities will work closely together going forward:

“This agreement provides the opportunity for two of the largest developers and landholders in Asbury Park to leverage their resources and work together for the betterment of the entire waterfront. iStar now owns approximately 33 acres of residential land in the Asbury Park waterfront. Combined with Asbury Partner’s role as Master Developer of the entire waterfront redevelopment area, the agreement will allow for better planning and staging of the residential development through a systematic approach overseen and controlled by a single entity. It removes concern that different market visions or business priorities will impede progress, and it enables one unified voice to work with local and state officials to effectively carry forward the waterfront redevelopment to its successful completion.”

As master redeveloper, Asbury Partners makes agreements with sub-developers, subject to approval by the city, to develop individual tracts in the waterfront area. Asbury Partners can also develop sites itself, as it’s now doing with the 28-unit VIVE townhouse project on Kingsley Street.

Asbury Partners also owns land in the redevelopment zone, such as the site of the proposed Bradley Cove townhouses on the city’s waterfront near the Loch Arbour border. It has the right to obtain certain properties through the use of eminent domain.

Previously, iStar Financial had been the lender to Asbury Partners. When the prior owners of Asbury Partners defaulted on their loans, iStar took ownership and installed Cheripka to run the redevelopment project for the company. He will now work together with Madison Marquette president of investments Gary Mottola [above at top] in coordinating the interests of the two companies.

 

 

 

 

 

 

 

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