Troubles hit Tarragon

From the Record:

Tarragon facing financial woes

The builder of two major North Jersey condominium projects said work is continuing even as the company fights to avoid bankruptcy in the real estate market meltdown.

New York City-based Tarragon Corp., which is building multi-story condominiums in Edgewater and Palisades Park and was selected to develop a 44-acre industrial tract in Ridgefield, announced last week that it can’t pay its vendors and lenders.

It said it had received default notices from lenders demanding that it immediately pay back 17 percent of its $1.6 billion in outstanding debt. Creditors include Barclays Capital Real Estate Inc., General Electric Capital and Fannie Mae.

Tarragon said it faces “liquidity issues caused by the sudden and rapid deterioration in the real estate credit markets.” It could also be delisted from the Nasdaq National Market for failing to file its quarterly report on time.

The spokeswoman said Tarragon is continuing to close on units in Palisades Park and Edgewater.

Martin Gobbo, the Palisades Park borough clerk, said he had heard nothing concerning the Trio project being built near Bergen Boulevard.

“We’ve had no problems,” Gobbo said. “Everything is going as planned, two buildings are complete, and they’re ready to start on the third. They’re in the process of selling the units they’ve already built.”

In June, Tarragon said the first building was 60 percent committed.

The story is similar in Edgewater, where Tarragon is building a 16-story condominium on River Road.

“I’m not aware of any problems,” said Greg Franz, the borough administrator.

Tarragon is putting the finishing touches on the complex and was applying for additional certificates of occupancy on Monday, Franz said.

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