Press Release brought to you by the Pinnacle Companies

Pinnacle Solutions U.S. - March 2012

05/09/2012

Pinnacle Solutions U.S.

 

Just over 4 years ago, Brian Stolar the CEO of The Pinnacle Companies formed Pinnacle Solutions U.S. as a real estate workout subsidiary. The new company was designed at the outset to be a workout company with the capabilities to handle any distressed real estate issue whatsoever, whether involving the property, owners, lenders or related parties.The real estate market was adrift and real estate portfolios contained more and more defaulting properties which often went into receivership. Stolar realized at the time that there was a better way to go than receivership and that was to put these troubled properties into the hands of an experienced and fully operational development company with the wherewithal to create new value and mitigate loss, something that Stolar had previously done as a principal in the acquisiton of over $700 Million in distressed loans and REO. Hence Pinnacle Solutions U.S. was formed to serve as a one-stop source to address troubled debt and under-performing assets. Pinnacle has focused particularly on residential and urban mixed-use projects and has significant experience as well in retail, hotel and office projects

 

Pinnacle Solutions U.S. has worked with banks and other partners on troubled assets in New Jersey, Connecticut and Florida. Most of the performed work has encompassed loan work-outs and renegotiations requiring considerable review, analysis, bankruptcy avoidance and on-site project work-out. The work-outs have required revised  entitlements, financial/market/operational planning, product redesign and repositioning, construction management plus sales/leasing management and marketing.

 

In Clifton New Jersey, Pinnacle has almost completed its work-out of Royal Club at Winthrop Court. Three years ago, Brian Stolar was approached by a bank with whom he had a relationship over many years. They had an unusual default situation in that they were one of 2 banks, both of which had loans on different parcels within the same property. The community was 45% sold and occupied, sales were at a complete halt and 90 units were in various stages of construction. Working with the bank, Pinnacle Solutions U.S. negotiated with the previous developer and the various lien holders to avoid a lengthy foreclosure process, resolved and mitigated substantial condominium association issues and purchased one of the loans in a partnership with KABR Real Estate Investment Partners headed by Ken Pasternak.  Mr. Pasternak said “Brian’s operational strategy for a fast work-out was very sound--our company specializes in opportunistic acquisition of real estate and we have been very pleased with the outcome”.  The buildings in question were finished in 2011 and the partially completed homes sold within 2 years of the purchase. Stolar said that the project is no longer distressed and healthy resales have already occurred.

 

Pinnacle Solutions U.S. is working with townships to create Next Generation development plans that look to the future and go much further. These communities will be branded as CentroVerde (literally Green Village or City). Clearly more and more rental and for-sale consumers, both younger and older, want to live within easy reach of major cities, have amenities and services close at hand, take advantage of available technology, keep home maintenance to a minimum and costs affordable. The goal of CentroVerde communities is to do all of this, but to also work with a town or city to create common amenities and/or open spaces and incorporate energy efficiency and environmental preservation into the total development plan. Pinnacle Solutions U.S. recently gained Redevelopment status and the designation as Redeveloper for a major parcel on Bloomfield Avenue, Montclair, at a site owned by DCH Auto Group, a large national car dealership with many automotive brands. DCH had shut down adjoining Jaguar and Volvo dealerships, located on the largest property in downtown Montclair, New Jersey and they had tried unsuccessfully to obtain approvals, which have now been obtained for 390,000 square feet of mixed use redevelopment to consist of a 130 room hotel, 30,000 square feet of retail space, 39,000 square feet of office space and 260 residential units. Mark Slosberg, Vice President and CFO of DCH said that “without Brian’s experience working with townships to achieve mutually desirable and sustainable communities we would not be where we are today. Brian has worked tirelessly to that end in Montclair, meeting with township and design professionals and eventually creating a very creative Mixed-Use project”

 

This same sentiment is echoed by Peter Liebman, the owner of the Douglas Auto Group in Summit, who had also tried for a long time to obtain creative approval for its former dealership site.  Mr. Liebman said: "We had worked on design and approvals for our condominium community adjacent to the Summit Train Station for over 4 years with not enough progress.  Brian and his team came in, worked on all aspects of the development submission resulting in a dramatic redesign, and, along with our original design group, met with and made presentations to the City that achieved a successful site plan approval in less than a year.

 

Pinnacle Solutions U.S. is also currently working with Phoenix Realty Group, Fifth Third Bank and TD Bank on another defaulted project in Englewood. This project was 70% completed and it had been shut down for 20 months. Pinnacle Solutions U.S. was engaged essentially as the "substitute developer" to renegotiate with and  manage the general contractor, settle 30 construction liens, redesign trouble spots in the original design/engineering of the building, prepare and submit documents to the Department of Consumer Affairs and Fannie Mae and to develop a marketing plan for a challenging for-sale environment.  Pinnacle Solutions U.S. has completed the building, opened the sales center and they are currently marketing the homes. Brian Stolar combined his experience in rental properties, condominium for-sale and condominium conversion projects and he has created a "Rent to Own" program that permits a buyer to move in immediately while they save up for their down payment, for which they also get a credit from the rental payments.  Ron Orgel, a principal of Phoenix said “based on the track record of Pinnacle and Stolar with communities like Mandalay on the Hudson in Jersey City and Maxwell Place in Hoboken, we felt they were the best and most experienced team to work with us and get the project back on track.

 

About The Pinnacle Companies

The Pinnacle Companies, which includes Pinnacle Communities, Pinnacle Custom and Pinnacle Downtown, is among the most respected real estate development and investment companies in the industry, known for their ability to anticipate trends in the changing real estate market and create “what’s next” in luxury residential communities. Pinnacle’s innovative approach to development and creative problem-solving are qualities that continually position Pinnacle as an industry leader in the real estate market. In 2006, The Pinnacle Companies was featured on an episode of “Extreme Makeover: Home Edition” for ABC television in the town of Bergenfield.

 

The award-winning company has built an enviable reputation in the sale and rental of luxury, active-adult and custom housing, as well as the office, retail and mixed-use markets. Since the company’s founding in 1984, Pinnacle has built in excess of 6,500 luxury attached and detached homes as well as several million square feet of retail, hotel and restaurant space. For more information on Pinnacle, www.pinnaclecompanies.net/orcontact the company’s Montclair headquarters at 973-379-1900.

  

05/09/2012 - 15:18

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the Pinnacle Companies

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