The question, as he enters his 45th year in the business — one that has seen him excel as a contractor, developer and financier throughout the region — is whether the Billy Procida of today would tell the 18-year-old Billy Procida of yesterday that he should get into the industry.
“We’re going to need a lot more than just an hour to answer that one,” he joked. “Let me just say this: Being naive sometimes is a good thing.”
Don’t be fooled. Procida is not naive. And beyond the “colorful” expressions he uses to make any point — and the Jersey guy persona he offers up — is one of the smartest developers and financiers of his generation.
He first made a name for himself in the 1980s in New York City, developing in areas that no one wanted to be in. When you don’t have a trust fund to seed your efforts, you rely on instinct — and having a view of things that others don’t see. You find success in the South Bronx and Brooklyn and other areas that people had written off.
Areas like Paterson.
Procida said Paterson has the potential to be the next Jersey City. The demographics are there, he said.
It has density and a train station, albeit one that needs an update, he said. And then, there’s this: It’s right next to the richest county in the area.
“Builders need to build,” Procida said. “And, when there is no more room to build in Bergen County, where are they going to go? The next town over. I’ve seen this over and over again, whether it was Jersey City or Harlem.”
It’s why Procida Funding & Advisors recently reacquired the Art Factory, a 21-building, 230,000-square-foot complex, at a bankruptcy auction earlier this year.
The Art Factory not only is close to Bergen County (and New York City), it occupies 5 acres in the Paterson Great Falls Redevelopment Area, a benefit that has spurred redevelopment and adaptive reuse projects of neighboring properties in recent years.
And, even though it’s next to Bergen County (and, obviously, New York City), the Art Factory parcel is in a federally designated Opportunity Zone, which brings other financial benefits.
After taking the property back in foreclosure, Procida is actively looking for another developer to come in — and see what he sees.
Procida, brokers from IPRG and members of Gensler’s fabulous Morristown-based team recently hosted a design charrette at the site with local leaders from Paterson in an effort to show how the property can be transformed into a vibrant, accessible and community-focused destination that would reflect the neighborhood’s authenticity and history.
“It’s a massive property,” Procida said. “Right now, we’re evaluating different options.”
And, while being in a historic district — which comes with restrictions — may be an issue for some, it’s not for Procida. He feels it adds to the site. And prevents it from becoming too modern.
“The world does not need another 30- or 40-story glass skyscraper,” he said.
What Paterson needs, Procida said, is someone who is a bit altruistic. It’s an attitude that he said has helped him make a true difference in the areas where he has worked in days gone by.
“I did a study of the South Bronx,” he said. “Over the decade we built there, crime went down 90%, particularly because we were building for cops, firemen, teachers and nurses. Graduation rates increased by the same metric. That’s how you improve society.”
Procida said it was one of the first lessons he learned.
“I remember what the old-timers would tell me when I first started: ‘Cater to the masses, eat with the classes. Cater to the classes, eat with the masses.’”
Procida said this philosophy not only can work in Paterson, but in places like Trenton, too.
In order to do that, he said, you need strong leadership at the local, state and federal level — pointing to the efforts of Ed Koch, Mario Cuomo and others who helped him in New York City back in the day.
You also need a better economy.
Procida said making the numbers work is becoming increasingly more difficult.
“The No. 1 killer on a project right now is interest rates,” he said. “Should interest rates be at 2.5%, like they were in 2021? No. But the 4%-6% range seems logical.
“Here’s the problem: If you started a building three years ago, even if you were a good, conservative guy, your rates were at 3.5%, so you underwrote it at 5.5%. Now, you finish at 8.5%. It is very difficult to make that work.”
“I’m about to turn 63. I should be working half-time. This market has got me working double-time.”
Supply-chain issues also are a killer, Procida said.
“I’ve had so many elevators waiting for one little part; it’s mind-boggling,” he said. “A part that is the size of a cigarette box is holding up an entire freaking building.”
He didn’t say “freaking.”
And he hadn’t even started in on tariffs, yet, either. That was coming.
“I don’t want to get political,” he said. “I don’t know where the tariff thing lands, but it’s got to come to an end.
“I generally understand that we’ve been on the wrong side of the tariff stick globally, but to try to unravel 50 to 100 years of that in a month is kind of a jolt. I don’t think anybody ever worried about tariffs — I know I haven’t ever thought about them.”
Procida jokes that maybe he’s just getting old and grumpy and cranky. But, when you hear him talk about the potential of the Art Factory — of cities like Paterson and Trenton and Atlantic City — you can see that the passion for the sector still drives him.
There’s just one thing missing.
“I’m about to turn 63,” he said. “I should be working half-time. This market has got me working double-time.”
To be 18 again.
Development goals for Art Factory
The Art Factory recently became a part of the portfolio of Procida Funding & Advisors — wich held a collaborative design session with stakeholders at the property. Key objectives that were identified during the process are as follows:
- Preserve the history of the Great Falls neighborhood while promoting the reuse of existing structures and maintaining Paterson’s aesthetic character.
- Create an inclusive development by promoting social equity, prosperity and accessibility for all.
- Establish a dynamic destination for residents, tenants, visitors and the broader Paterson community that includes amenities like maker spaces, recreation spaces, and restaurants.
- Design spaces that connect people, support the Art Factory district and enhance the surrounding community, such as ground floor retail, wayfinding and new public gathering spaces.
- Design the site to prioritize the pedestrian experience and create spaces for the public with parks, courtyards, gardens and amphitheaters.
- Create a resilient design that embraces sustainable principles, preserves resources and supports the health and well-being of the community through the use of solar energy and the creation of programmed outdoor space and fitness amenities.
For information about Procida Funding & Advisors, go to procida.com.
