Investing

I'm regularly asked when to begin thinking about investing in the Village. As anyone who owns real estate in North Rockland knows, there’s a perfect storm raging in Haverstraw. Huge tax increases tracing to the Mirant certiorari and an out-of-control school budget have blind-sided owners of both residential and commercial properties in North Rockland with tax increases of up to 100%. Add to that the local effects of the nationwide mortgage mess and real estate crunch and you have a difficult situation. Owners of multi-family and commercial properties are caught between maxed-out

rents and skyrocketing expenses. Many are no longer in the black, and are bringing money from home every month to bridge the gap. They can’t sell, because virtually no one is buying. Not even at current prices, which have been much-reduced from months ago and continue to fall. The problem is further exacerbated by lack of progress on the Village’s ongoing revitalization. GDC, the municipality’s designated developer for the Haverstraw waterfront has not yet broken ground on the public infrastructure at the foot of Main Street in the business district -- a ferry dock, recreational pier, hotel/conference center, restaurant, museum and underground garage.

And a much-discussed plan for new lighting, sidewalks, and other Main Street improvements is now several years overdue. Commencement of work on these projects, reportedly slated for ’08 and ’09, should re-kindle investor enthusiasm and jump-start the next stages of the Village’s revitalization.

Meanwhile, efforts are currently underway to ameliorate the crushing tax burden. State Senator Tom Morahan, with Representative Ken Zebrowski, is working with the Governor’s office on a ten-year, hundred million dollar grant intended to help pay down past tax obligations. He has also asked the North Rockland school administration to provide him with a pro-forma budget demonstrating significant

cuts that can be made going forward. Moreover, the Greater Haverstraw Chamber of Commerce and the North Rockland Business Alliance continue to keep these issues in the forefront in their contacts with town, county and state officials. These are all hopeful developments which should improve conditions for current owners and encourage new investors. As asking prices continue to moderate, opportunities will emerge on or near the Haverstraw waterfront for investors who are able to buy and hold for the short to intermediate term.

Some vacant storefronts, a slow retail environment, weakness in the residential rental sector, and political turmoil over parking and downtown infrastructure have combined to mar the perception of investment opportunities in this picturesque riverfront

village. But the problems are more apparent than real. With its walkable streets, live music and theater, myriad restaurants and fashionable shops, Nyack is still the premiere alternative to Manhattan for thousands of visitors from Bergen County, Westchester and other parts of Rockland. Real estate prices, always on the high side compared to some other Rockland communities, have begun to decline just a bit in response to market pressures.But even without these declines, there has always been money to be made here for the crafty buyer who seeks out one-of-a-kind opportunities and does the appropriate due diligence.

A much-heralded re-development plan, intended to change the face of this long-declining retail hub and residential community, is seemingly underway. Demolition has already leveled two downtown blocks, making way for planned construction of mixed use properties in early ‘08. While greenlighting proposals for offices, storefronts and industrial projects, the Village has adopted a go-slow attitude when it comes to new housing, proceeding cautiously for fear of overwhelming the existing infrastructure with too much vehicular traffic. Spring Valley is one of only four Rockland communities offering passenger train service, and this should make a revitalized Village an attractive location for both commuters and employers. Since asking prices here are somewhat lower than in many other Rockland communities, and since the Village fathers are, at this point, more receptive than most to innovative ideas, investors with a five to seven year time line might do well to give Spring Valley some serious consideration.

Successful new restaurants are one excellent indicator of a business district’s resurgence, and by that yardstick alone investments in Pearl River deserve serious consideration. Though not technically a village, this unincorporated hamlet in the Town of Orangetown looks just like one. It has a busy, active, pedestrian-friendly main drag with a passenger train station, lots of wonderful shops, and an increasing number of drinking and dining establishments that draw crowds from all over Rockland County and nearby New Jersey. Pearl River also has an important business and industrial base, including the largest office complex in Rockland County as well as some of the best-known pharmaceutical manufacturers in the world. Long thought of as a lily-white residential enclave, the community has in recent years become somewhat more diverse. Although not as trendy, tourist-y or glamorous as Nyack, Pearl River represents a solid, interesting location for potential investment.

Close to the Western, more rural edge of Rockland County, this village is home to a major railyard, the world headquarters of Avon Products, and one of the county’s two main hospitals. Once a stopping point for vacationers traveling to borscht belt resorts, Suffern’s decline has paralleled that of Route 17 as the main route to the Catskills. With some success, the village has in recent years been making efforts to re-invent itself as an office and retail destination. Its downtown anchor is the 1,000-seat Lafayette Theater, the only grand old movie palace remaining in Rockland, saved from the wrecker’s ball through the efforts of local preservationists. Suffern is still very much in transition, with a persona quite different from those of other revitalizing Rockland communities. Investors considering buying property in the downtown business district would do well to spend some time getting to know the locals, by attending public meetings and patronizing Village shops and restaurants

Fifty years ago little more than farmland, a courthouse, and one small strip of stores in the Town of Clarkstown, New City has long-since blossomed into a populous County Seat filled with residences, retail stores, banks, professional offices and government facilities. The street grid lends itself to driving rather than walking, with strip centers and small office complexes spread out over the hamlet’s lengthy Main Street. New City continues to offer strong opportunities for ambitious commercial investment. The approval process, however, can be distressingly long and difficult, best suited to those with deep pockets and lots of optimism.