DEVCO is a renovation company that has been constructing amazing buildings in downtown New Brunswick for over 30 years. The new buildings replace the shabby, old deteriorating buildings, and they create a spectacular, new and updated look in a dilapidated neighborhood.
This project is a much needed and worthwhile project, but the Press of Atlantic City has reported that Devco has missed $7 million in payments and are $20 million in debt to the group of lenders who made the investment in 2005. The total amount borrowed for the Heldrich Hotel project was $107 million, but the $30 million that was in bonds has been repaid.
Devco has been transforming New Brunswick by turning the dingy streets and trash-lined sidewalks into gorgeous hotels, convention centers, and retail stores. The Heldrich seemed to fall at a bad time because In 2008, the economy crashed.
So, the brand new five-star Heldrich Hotel could not get guests. The economy hit too hard, and the Hotel never reached full capacity, which is what is needed to pay all the bills and make a profit. In recent years, the Board had to contribute over $700,000 for everyday costs to run the Hotel.
A spokeswoman for the renovation company, Maria Prato, says that Devco has every intention of repaying the investors, but it will take several years longer. She stated that Devco has been working on this spectacular project since the 1970s, and they aren’t going to stop now. Their history speaks for itself, and they will continue to renovate and rebuild.
Chris Paladino is Devco’s attorney who arranged the loan with the investors, and he too said that there is no need for worry. The New Brunswick Project will continue to move forward for many years to come.