The Town of Orangetown is abuzz with the completion of a significant real estate transaction: the sale of HNA’s Palisades Training Center on Route 9W. The 106-acre property has been purchased by a group of developers for $26.3 million, marking the end of a tumultuous saga that included involvement from the Chinese government, bankruptcy proceedings, and various development proposals.
The new owners, REVEIL LLC, operating as Palisades Renewal Center LLC, acquired the property from SL Green, a New York REIT that took possession after the Chinese-government-backed HNA lost it in bankruptcy. The developers plan to transform the dilapidated site into a new hotel and a residential community featuring 342 townhouses and apartments.
Orangetown recently held an emergency meeting to update a Memorandum of Agreement (MOU), facilitating the property’s purchase. This approval enables the developers to seek a zoning change, adding residential use to the existing hotel and office zoning. However, the developers have agreed to several conditions, including a restriction on selling the property to a nonprofit for two and a half years and granting the Town of Orangetown a right of first refusal for five years. These conditions are documented in the Rockland County public records.
Town Supervisor Teresa Kenny expressed optimism about the new ownership, stating, “The Town Board is pleased that the process it commenced over three years ago has successfully resulted in new ownership of the former IBM Palisades Conference Center property. The Town Board is looking forward to working with the new owners and local residents to ensure that this critical asset is redeveloped in a way that is consistent with our collective vision for the town.”
The town board has also resolved five years of tax certiorari challenges filed by HNA, with nearly $9 million in back taxes due to Rockland County. The settlement includes refunds to SL Green from the school district, the town, and the county.
REVEIL’s plans for the site have evolved significantly since their original proposal. Initially, the developers envisioned updating the hotel and conference center, along with adding glamping sites, event spaces, a working farm, test kitchens, co-working spaces, and 20 to 30 townhouses. Now, the plan includes 342 residential units, reflecting a much denser development approach.
The expanded development team now includes Joseph Santullo, owner of Systems2000Plumbing in New York City, and Pegah Ebrahimi, Co-Founder and Managing Partner at FPV Ventures. Despite the ambitious plans, the updated MOU does not guarantee zoning changes. A zoning text amendment will be necessary, and detailed plans must still undergo review by the town and its planning professionals. The hotel must be operational before residential zoning and construction can proceed.
The journey to this point has been complex. Orangetown officials have been actively involved in determining the property’s future use since a previous sale to a Brooklyn-based Hasidic group fell through. Among the contenders for redevelopment were financier Billy Procida and architect Rick Cook, but REVEIL’s proposal ultimately prevailed.
Town Supervisor Kenny highlighted the challenges and changes since the initial proposal in 2021, including property degradation and rising construction costs. The town’s proactive role was crucial in steering the property’s redevelopment, ensuring that it aligns with the community’s vision and needs.