Garrubbo Properties Faces Controversy for Cedar Grove Condos

The development of the Cliffside Apartments in Cedar Grove, New Jersey, has been a source of controversy since its inception in 2016. Cliffside Apartments, which includes hundreds of units, has been approved by the municipal government, despite opposition from the community.

Garrubbo Properties, a real estate development company, is completing the project through a series of shell company LLCs, including 36 Cliffside Drive LLC, all of which list Tricia Obrien as registered agent. Tricia Obrien nee Garrubbo is also an agent for several other shell companies, including MCE 1 LLC. All of these companies list the same mailbox rental business as their address at 551 Valley Road Suite 346 in Upper Montclair. According to public records, these companies include Hook Mountain Road 28 LLC, MCE 1 LLC, Clear Sky Leasing LLC, Welsh Lane LLC, and 36 Cliffside Drive LLC.

Cedar Grove Council Members have advised that the development is being completed to comply with the Mount Laurel I and II court decisions that require municipalities to provide affordable housing. The municipal government has repeatedly stated that their hands are tied by these affordable housing requirements, though nothing in either the law or the court decisions exempts developers from New Jersey's stringent environmental protection statutes.

The environmental impact of the building site is a concern for many residents. The site is a registered NJDEP remediation site with a monitoring well on site. Additionally, Garrubbo has already clear-cut a mature forest of over 800 trees along the scenic West Essex Trail, a popular local hiking trail. This has caused outrage among local residents and environmental groups, who fear the destruction of natural habitats and loss of biodiversity.

As the construction of the Cliffside Apartments progresses, Cedar Grove officials and the NJ DEP are expected to closely monitor the environmental impact of the development and the actions of Garrubbo Properties. However, the community will need to remain vigilant to ensure that the developers comply with all applicable regulations and take steps to minimize their impact on the local environment, since permits for the majority of the work have already been issued.

Garrubbo Properties is a well-known presence in Cedar Grove and has developed several other properties in the area, including Zephyr Ridge, a 24-unit luxury apartment complex that was sold to Alfred Sanzari Enterprises through a 1031 exchange. Alfred Sanzari Enterprises is heavily associated with Cushman & Wakefield.

According to tax experts, 1031 exchanges like those used by Garrubbo Properties and its associates can raise questions about the true value of the properties involved in the exchange and have implications for the company's tax liability. This in addition to lingering questions about the environmental impact of Zephyr Ridge and other developments completed by Garrubbo Properties in the area, which were also constructed in formerly natural areas.

The development of the Cliffside Apartments and other properties in Cedar Grove by Garrubbo Properties has raised questions in Cedar Grove about affordable housing, environmental impact, and potential legal and tax improprieties. It will be important for residents and regulators to closely monitor these developments and ensure that they are in compliance with all applicable laws and regulations. However, extensive use of shell companies, numerous and varied names on legal filings, and the threat of a Builder's Remedy lawsuit in regards to Mount Laurel I and II make both monitoring and challenging unethical or illegal acts by companies like Garrubbo Properties a difficult task at best, particularly by residents who are unlikely to be well versed in the public records system and the courts.