From the Jersey Journal:
In the can’t-miss real estate market of Jersey City, the city of Jersey City, well – missed.
Eighteen years ago, the city purchased 325 Palisade Ave., a three-story building that city employees worked out of until about a year ago, for $2.4 million.
Last month, the city auctioned it off for $1.85 million, taking a $550,000 bath.
City officials attributed the financial soaking to dilapidated conditions.
“It needs a new roof, it’s not handicap compliant, the HVAC (heating and air conditioning) system needs to be replaced, it’s a wreck,” said Business Administrator Brian O’Reilly. “We’d have to vacate the building for a year (to repair it).”
The sale became an issue Monday night’s City Council caucus, when a stunned Councilman Bill Gaughan, who represents the Heights neighborhood where the building is, noted the difference between the purchase and the sale price.
A quick note, 18 years ago in 1988, Jersey City was nearing the peak of it’s last speculative real estate bubble. -jb