Toll Brothers expansion will tap into urban development boom.

Toll Brothers, Inc. last week announced the expansion of its urban development operations with the acquisition of substantially all of the assets of The Manhattan Building Company and its affiliated design operations. The purchase price was not disclosed.

The Manhattan Building Company has specialized in the development and redevelopment of urban in-fill locations in Hoboken and Jersey City during the past two decades.

This acquisition will expand Toll Brothers' position in the New Jersey luxury residential market by broadening its offerings to include mid- and high-rise residences along northern New Jersey's affluent waterfront, known as the Gold Coast, across from Manhattan.

Robert I. Toll, chairman and chief executive officer of Toll Brothers, Inc. stated: "We are thrilled to have the Manhattan Building Company join the Toll family. Sanford Weiss, Joe Caulfield, Dennis Devino and their associates provide us with great expertise in urban midand high-rise projects in some of the nation's most complex and lucrative markets.

"We see great demand from affluent buyers for dramatic residences in exciting urban locations.

"The resurgence of American cities, fueled by population growth, increasing affluence and the appeal of bright city lights, is a catalyst. Many maturing baby boomers are also choosing city living rather than relocation to Sun Belt regions as they enter a new stage in their lifestyles."

Sanford Weiss, president of the Manhattan Building Company, stated, "Cities are where pro-growth sentiment, supportive government policies and positive local efforts lead to the type of innovative development in which MBC specializes. We view the urban development market as one with tremendous opportunity in the 21 st century."

"Toll Brothers and MBC will make a powerful team. Toll's resources will enable us to expand more rapidly than we otherwise could. Toll's strong brand name reputation, which is very well-known in the New Jersey luxury single-family market, will naturally spill over into the luxury mid- and high-rise urban development niche."

Since its inception, MBC, which is headquartered in Hoboken, NJ, has developed more than 800 residential units totaling over $180 million. MBC is currently building in a joint venture, The Sky Club, a 326-unit, 17-story two-tower structure under construction in Hoboken, New Jersey. Toll Brothers expects to account for its results from the Sky Club under the equity method.

MBC also is in the planning stages on several additional high-rise and mid-rise opportunities, including The Cliffs, a 5-story historic rehabilitation condominium project in Jersey City and The Grove, a 12-story condominium also in Jersey City.

Toll Brothers and MBC are actively pursuing other development opportunities in the market.