The New Brunswick Development Corp. (DEVCO) is in a hunt for cash, cash it needs to repay a $20 million loan granted by the Casino Reinvestment Development Authority (CRDA). According to the Press Of Atlantic City, this $20 million loan was part of a $107 million project taken on by Devco to reconstruct The Heldrich Hotel, a building that had been in terrible condition but has been transformed into a premier luxury hotel. While Devco achieved the results it wanted on the reconstruction, the return on investments made for this project by municipal bonds and the CRDA loan have not been realized as the hotel’s occupancy rate has not met expectations thus far. Devco spokespeople have stated they are confident that both bondholders and the CRDA loan will be repaid, but they need more time to do so.
Devco has been one of New Brunswick’s leading non-profit real estate developers for about 40 years. They have overseen about $1.6 billion in redevelopment projects during that time and are continually breaking ground on new ones. The organization is spearheaded by Chris Paladino, president and local attorney who also is head of the Atlantic City Development Corp. Also serving in the executive leadership are Vice Presidents Allison Brown and Randall Currier, and chief development associate David Banks. Devco has won many awards for its projects including the Smart Growth Award four times, the CMI Paragon Award, and the NJ BIA Good Neighbor Award.
Besides the Heldrich, Devco has undertaken other notable projects such as the Old Bridge Long Term Care Facility. This project was undertaken in 2009 as part of an expansion to the Roosevelt Care Center at Edison and to offset subsidized costs for health facilities. Recently, with the approval of Governor Chris Christie Devco has undertaken a project to expand the Campus of Rutgers University, including building state-of-the-art academic buildings, university housing, and New Brunswick’s Theological Seminary.