The U.S. Bankruptcy Court for the District of New Jersey has approved a reorganization plan for Kara Homes, transferring control of 12 Kara-related properties to Maplewood Homebuilders LLC, effective immediately, according to a statement released by Maplewood on Thursday.
Under the plan, Maplewood Homebuilders will own and manage the 12 properties, comprised of approximately 600 homes throughout Central and Southern New Jersey: Bergen Mills CF (Monroe); Buckley Estates (Marlboro); Cottage Gate (Middletown); Cottage Gate II (Middletown); Hawkins Ridge (Jackson); Landings at Manahawkin (Stafford); Orchard Meadows (Manalapan); Ridgeview (Mt. Arlington); Toby Gardens (Old Bridge); Waters Edge (Little Egg Harbor); Winding Run (Little Egg Harbor); and Woodlake Greens (Lakewood). Maplewood says it expects to invest more than $200 million into these communities to "jump start" development. Kara Homes originally filed for bankruptcy in October 2006, halting construction and further development for projects throughout its portfolio.
"Our first priority now is to those homeowners and contract holders who have been waiting for a resolution to the Kara Homes bankruptcy," said Kevin Fiore, Maplewood COO. Maplewood is a joint venture between Glen Fishman, a real estate developer in New Jersey, and an entity affiliated with Plainfield Asset Management LLC, a hedge fund based in Greenwich, Conn. Fishman is the managing director of Dornoch Management and a founding partner and president of Fishman Real Estate Enterprises, which is based in Lakewood, N.J.