Amtrak Pays $60,000,000 for Gateway Tunnel Project Property

In a record setting deal, on July 26, 2024, National Railroad Passenger Corporation (d/b/a Amtrak) closed on the $60,000,000.00 purchase of the 1899 Park Avenue, Weehawken. The deal may be the largest single eminent domain settlement in New Jersey history. The approximately 2.4 acres property is required for the Gateway Tunnel Project. The property was formerly owned by Dykes Lumber who will remain open for business through March 1, 2025 until the business is relocated. Amtrak offered to acquire the property for $14,800,000.00 based on a November 30, 2023 appraisal report by Weitzman Associates, LLC based on a highest and best use of the property of continued retail and warehouse. Dykes Lumber was represented by Scott A. Heiart and Michael J. Ash of Ward, Ash & Heiart, LLC and co-counsel Joseph L. Basralian and Michael G. Stingone of Winne, Banta, Basralian & Kahn, P.C. Scott Heiart reviewed Amtrak’s offer and found the analysis to be incomplete: “there is no doubt that 2.4 acres on the Weehawken waterfront would sell in the open market for residential development.” With the support of professional planner Keenan Hughes of Phillips, Preiss, Grygiel, Leheny and Hughes, LLC appraiser Paul Beisser of Integra Realty Resources, the Dykes Lumber team presented a valuation concept based on a multi-family development yield of 550 units. “With the support of our experts, we were able to show Amtrak the realistic development yield of the property and a value based on market evidence of value” said Michael Ash “and we convinced Amtrak that if they filed the eminent domain complaint it would result in wasteful protracted litigation that would cost the Gateway Project critical time.” Ultimately Amtrak agreed and the parties worked toward a sale in lieu of condemnation for the consideration of $60,000,000.00. “We are grateful for our co-counsel, Joe Basralian and Michael Stingone for trusting us to represent their long-time client when the special need of eminent domain defense was necessary” said Scott Heiart.