HUNTINGDON VALLEY, Pa., Nov. 9, 2004 (PRIMEZONE) -- Toll Brothers, Inc. (NYSE:TOL), the nation's leading builder of luxury homes, and Apollo Real Estate Advisors L.P., today announced the formation of a joint venture to convert the 525-unit Hudson Tea Building apartments in Hoboken, New Jersey to luxury condominiums. Located on the Hudson River waterfront directly across from 34th Street in Manhattan, the complex consists of two 12-story buildings with 13-foot ceilings totaling approximately 540,000 square feet on 3.9 acres. Formerly the Lipton Tea Company manufacturing site, the buildings, which were substantially renovated and converted to rental apartments in 2000 by the previous owner, are currently 97% occupied. Residents enjoy spectacular views of the Hudson River and New York City and easy access to Manhattan via bus, car, Path Train and ferry. Apollo Real Estate Advisors L.P. invested in the partnership through its Apollo-GMAC Real Estate Mezzanine Fund. The purchase price was not disclosed.
The properties, which will be marketed as 1500 Washington and 1500 Hudson at Hudson Tea, will offer studios, one, two and three bedroom units ranging from 735 to 1,640 square feet, with 13-foot ceiling heights and large windows providing spectacular views of Hoboken, the Hudson River and the Manhattan skyline. The property also includes a 6,000-square-foot fitness center and 1,600 square feet of retail space. Condominium prices are projected to range from the $300,000s to over $1,000,000.
Toll Brothers also owns several additional parcels on the Hudson Tea site: a 10-story building shell and approximately 11.5 acres of land currently in use for ground level parking. These sites will be developed for up to 758 residential mid- and high-rise units.
Robert I. Toll Chairman and CEO, stated: "We are looking forward to working closely with Apollo Real Estate Advisors, whose reputation and expertise are tremendous.
"Hudson Tea is a beautifully renovated residential waterfront complex. We plan to offer a unique luxury ownership opportunity in a market where this is in great demand. This site represents an expansion of our presence on the affluent northern New Jersey waterfront as part of our growing urban development program.
"We began in 2003 with our acquisition of Manhattan Building Company, now known as City Living by Toll Brothers. As part of this acquisition, we gained a joint venture interest in the Sky Club in Hoboken, a now nearly completed 326-unit condominium complex in two 17-story buildings, where sales have been excellent. At Sky Club, 105 units have been delivered, 186 others are in backlog and another 19 are under non-binding agreements.
"Also on the Hoboken waterfront, in January 2004, we, in joint venture with The Pinnacle Communities, acquired Maxwell Place, the former home of the Maxwell House Coffee Company. There we plan to build up to 832 luxury mid- and high-rise condominiums on the Hudson River. We are in the midst of clearing the site and hope to start the first tower of 169 luxury condominiums later this year.
"In addition, we are developing 700 Grove, a planned 230-unit twelve-story condominium high-rise on the Hoboken border in Jersey City, which is owned 100% by City Living by Toll Brothers. In July 2004, we began pre-sales there and in one hour met our goal of taking 70 non-binding reservation deposits; we then took 100 backup deposits as we continued to raise prices.
"In New Jersey we have a brand name based on more than two decades of experience in the state. We are very excited about our expansion on the waterfront and anticipate urban development will become an even greater part of our business in the coming years."
Richard Mack, managing partner of Apollo Real Estate Advisors, stated: "We are very pleased to be teaming up with Toll Brothers on this exciting project. In recent years, Hoboken has become a highly desirable and more affordable option for both buyers and renters who want proximity to Manhattan. This project, located on the riverfront just 5 minutes from the City by ferry, is indicative of how the area has evolved for residential and commercial investment."
About Toll Brothers, Inc.
Toll Brothers, Inc. is the nation's leading builder of luxury homes. The Company began business in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange and the Pacific Exchange under the symbol "TOL". The Company serves move-up, empty-nester, active-adult and second-home home buyers and operates in 21 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Maryland, Michigan, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, and Virginia.
Toll Brothers builds luxury single-family and attached home communities, master-planned luxury residential resort-style golf communities and urban low, mid- and high-rise communities, principally on land it develops and improves. The Company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management, home security, landscape, cable T.V. and broadband Internet delivery subsidiaries. The Company also operates its own lumber distribution, and house component assembly and manufacturing operations.
Toll Brothers is the only publicly traded national home building company to have won all three of the industry's highest honors: America's Best Builder from the National Association of Home Builders, the National Housing Quality Award and Builder of the Year. For more information visit www.tollbrothers.com.
About Apollo Real Estate Advisors, L.P.
Apollo Real Estate Advisors is one of the most active and prominent opportunistic real estate investors in the U.S. and internationally. Apollo specializes in undermanaged and distressed properties in major urban areas that are trading at a discount to their intrinsic value, offering opportunities for the firm to enhance value through its operational and financial management. Since the firm's founding in 1993, Apollo has overseen the investment of eight real estate funds totaling more than $4.5 billion in equity. Apollo funds collectively have invested in more than 210 transactions with an aggregate value of more than $20 billion. Apollo principals are William Mack, founder and senior partner; Lee Neibart, senior partner; John Jacobsson and Richard Mack, managing partners, New York; William Benjamin, managing partner, London; Richard Ackerman, partner, Los Angeles; and Stuart Koenig, partner and global CFO.
Certain information included herein and in other Company reports, SEC filings, statements and presentations is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning anticipated operating results, financial resources, changes in revenues, changes in profitability, interest expense, growth and expansion, anticipated income from joint ventures and the Toll Brothers Realty Trusts Group, the ability to acquire land, the ability to secure governmental approvals and the ability to open new communities, the ability to sell homes and properties, the ability to deliver homes from backlog, the average delivered price of homes, the ability to secure materials and subcontractors, the ability to maintain the liquidity and capital necessary to expand and take advantage of future opportunities, and stock market valuations. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other Company reports, SEC filings, statements and presentations. These risks and uncertainties include local, regional and national economic conditions, the demand for homes, domestic and international political events, uncertainties created by terrorist attacks, the effects of governmental regulation, the competitive environment in which the Company operates, fluctuations in interest rates, changes in home prices, the availability and cost of land for future growth, the availability of capital, uncertainties and fluctuations in capital and securities markets, changes in tax laws and their interpretation, legal proceedings, the availability of adequate insurance at reasonable cost, the ability of customers to finance the purchase of homes, the availability and cost of labor and materials, and weather conditions.