Applied Cos. gets partner for Beachfront North

Applied Cos. gets partner for Beachfront North

By carolyn o’connell

Staff Writer

LONG BRANCH — Some changes will be made to Beachfront North, necessitating another appearance before the city’s Planning Board.

Changes to the plan coincide with a change in the designated developer for the project. The Applied Cos., Hoboken, won the right to handle the project, but is now taking on a partner, Matzel and Mumford, a subsidiary of Hovnanian Enterprises Inc., Middletown.

"We knew from day one that they (Applied) would bring in a partner for this project," said Councilman Anthony Giordano who also sits on the redevelopment council.

Before being acquired by Hovnanian, Matzel and Mumford developed residential communities in Monmouth, Middlesex, Somerset, Mercer, Hunterdon and Morris counties. None of those projects included rental units, such as the original plans for Beachfront North contained. The design changes being suggested are in line with Matzel and Mumford’s development strategy; all the units now planned for Beachfront North will be for sale.

The partnership of the two developers will fall under a new subsidiary called MM-Beachfront North I LLC for the first phase of the project.

"This project," said David B. Fisher, vice president of Matzel and Mumford, "is a unique project for the company which has not yet built an urbanized oceanfront community."

Matzel and Mumford’s design changes and building expertise are not the only contributions the developer will be making to the project. The company also will obtain $45.5 million in construction loans for the project.

The financing will be used to fund three aspects of the development: $17 million for townhouses, $24 million for condominiums and $4.5 million for site work.

In addition to the change from renting to selling the units, there will also be fewer units overall. Also, a different parking plan will be put forward.

The project is in a designated redevelopment zone located north of the Ocean Place Resort and Conference Center. The original concept had received preliminary approvals from the Planning Board.

Because of the proposed changes, the plan has to go back before the board. That is expected to take place in November.

According to Giordano, the footprint for Beachfront North, 7,000 square feet of commercial space and 104 townhouses in the original approved plans will stay the same.

What will change according to Fisher is the number of condominium units, which is expected to drop from 330 down to between 185 and 200. All of the planned studio apartments will be eliminated.

"The elimination of the studios will increase the value of the remainder of the units," said Fisher.

The sale prices for the units have not yet been established but could be expected to range from $400,000 to $600,000, according to Fisher. The largest unit is expected to be 2,800 square feet.

The parking deck originally planned will be completely eliminated and replaced with underground parking and some street-level parking.

Fisher noted that the number of spaces will not change, meaning there will be more than two spaces for each unit.

"The townhouses will have one to two car garages, which will be accessed from behind the home, which will give the project a better look," said Fisher.

The group also will develop lawn areas which, when finished, will belong to the city. Those spaces will be available for additional event parking or for use as event staging areas.

Fisher said, "The Applied Companies will still be a participant in all the major decisions as we develop them for the project."

As an example, Fisher referred to the marketing of the community, the design of a 4,000-square-foot restaurant which will be located at the corner of Ocean and Madison Avenues, and the type of retail opportunities within the community.

Before joining the Applied Companies in developing Beachfront North, Matzel and Mumford was competing to develop Beachfront South. It has recently removed itself from consideration for that project.

The second phase of Beachfront North, from Ocean Terrace to Marine Terrace, also will be developed by Matzel and Mumford and the Applied Cos. The plan for that area has not yet been defined.

The Applied Cos. remains the sole developer for Pier Village, a redevelopment project just south of the Ocean Place Resort and Conference Center.