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Firm to buy office tower from RTC in Princeton.

Firm to buy office tower from RTC in Princeton

Princeton Overlook, a financially troubled office complex near Princeton University, will be sold to a Manhattan-based investment firm, in a deal expected to help the building's developers avoid bankruptcy and repay almost all of the Resolution Trust Corporation's first mortgage loan plus accrued interest.

Realty Asset Advisors, Inc. (RAA), said it has signed a contract to purchase the 150,000-square-foot building and an abutting 10.5-acre site on U.S. Route 1 in West Windsor, New Jersey, on behalf of a limited partnership. The closing is scheduled for January 1992.

Patrick F. O'Malley, managing director of RAA, said his company will serve as managing and general partner for the new ownership. The developers, known as the Princeton Overlook Joint Venture, will retain a subordinated minority property.

Princeton Overlook's $14.6 million mortgage was among the troubled assets of City Federal Savings when that institution was seized by the federal Resolution Trust Corporation in 1990.

O'Malley said the purchase price to RAA comprises the mortgage debt plus additional sums owed to unsecured creditors.

Although the three-year-old building is now about 90 percent leased, its owners ran into financial difficulties during a slower than expected lease-up period. Major tenants in the building include Xerox Corp., Novo Nordisk, Husky oil and Paine Webber.

The developers originally intended to erect a second office building at Princeton Overlook, but the new owners will defer those plans for the time being, according to Mr. O'Malley.

RAA is an affiliate of Catalano Xornblum Management Corp., which redevelops and manages office buildings in Manhattan. Its flagship properties are The Fashion Gallery Building at 1412 Broadway, a major center for apparel designers, and 230 Park Avenue South, home of Young & Rubicam's Burson-Marsteller subsidiary.
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Title Annotation:Resolution Trust Corp., Realty Asset Advisors Inc., Princeton Overlook
Publication:Real Estate Weekly
Date:Oct 9, 1991
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