Real Estate

A Ruling, Finally, on the Fate of the Palisades in Union City, N.J.

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After being tied up in litigation for years, an assemblage of 13 properties on the cliffs west of Hoboken will see what the market has in store for them.

It’s rare for a sizable parcel of land to come up for sale in Union City, N.J., the third most densely populated city in America, according to the census.

But a federal judge appointed a real estate brokerage to sell 13 mostly contiguous properties on 2.25 acres atop the Palisades, west of Hoboken, after ongoing litigation among property owners tied up development for the last nine years.

In early July, Judge Leo M. Gordon of the United States Court of International Trade appointed the Kislak Company in Woodbridge, N.J., as the sales broker, which is now seeking potential developers for the site. (Judge Gordon was assigned to the case in the U.S. District Court in Newark to help out with a backlog of cases, according to a senior courtroom deputy, Nitza Creegan.)

Jason Pucci, the chief executive of Kislak, said that the selling price for the properties, as well as what might be built there, “remains to be seen” depending on interest from developers and the offers received. Kislak is in the process of adding a 14th cliff-side property to the parcel, bringing the total to 2.68 acres, but that deal has not yet been finalized, Mr. Pucci said.

The property has sat vacant since an investment group bought the houses from individual homeowners from 2005 through 2009. The investment group, Sky Pointe LLC, had visions of demolishing the century-old houses and creating two residential towers, totaling 99 units, and a park. They scheduled a community meeting on the proposal for September 2019, then canceled it. Nothing had advanced until the court ruling in July.

Kislak’s deadline for bids is Sept. 12. Once sold, the proceeds will go to the court for eventual disbursement to the partnership, including Sky Pointe LLC, that owns and is selling the properties.

Mr. Pucci said it’s possible several buyers could purchase parts of the land, but Kislak would prefer to sell the parcels as one.

“It’s zoned for smaller-scale residential,” he said, “and we’re anticipating that’s what someone is going to do. There are height restrictions and you don’t want to block the views of neighbors.”

The land falls into the city’s Palisades Preservation Overlay District, which is currently zoned for low-density residential development and a few other uses, such as parks and playgrounds.

Neighbors in the area have been frustrated for years as the properties fell into ruin, and some now say they’re hopeful for development.

Kate Sparrow, a neighbor on Mountain Road who started a petition in 2015 to remove the abandoned properties, said she had recently noticed “for sale” signs on the property.

“I’d like to see townhouses,” Ms. Sparrow said. “Not like the huge apartment buildings down in Jersey City. I hope they keep the cliff wild.”

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