The New Jersey Development Corporation is a nationally recognized real estate development firm that is well known for its ability to raise public debt in order to redevelop existing real estate or build new projects. The company has built a number of different projects including renovations of cultural buildings, development of student housing projects, and building local government buildings.
One of the most recognized projects that the New Jersey Development Corporation has been involved in is a project known as The Heldrich, which is a new hotel and conference center that the company built in 2005. The project was funded from a variety of different sources including about $20 million from the Casino Reinvestment and Redevelopment Committee.
While it was expected that the hotel would be able to attract dozens of major conferences per year, it has not been as successful of a project as was once thought. The project in recent years has had less that 65% occupancy and has continued to lose money, as it has not been able to attract the high-end conferences that hotels need to succeed.
According to an article written by the Press of Atlantic City, the lack of cash flow has continued to be a problem for the hotel. The primary owners of the company have continued to have to invest personal assets in order to keep the property operational. One area that the property has struggled has been to make its payments on its loans due to lenders and bondholders. In the last month, the owners were not able to make a $1 million payment due on principal and interest.