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While it may have seemed like the best of times, 1986 was the worst of times for a newcomer to New Jersey commercial real estate. The real estate building bubble of the early 1980s finally burst after the 1986 Tax Reform Act went into effect, sending developers scurrying to find ways to cover loans called in by bankers, as regulators tightened rules on loan portfolios. The toppling dominoes sent many developers into bankruptcy and left their buildings empty--for years.
But one newcomer that survived is Somerset-based Illva Saronno, which has made the transition--albeit a rocky one--from exclusive bottler and distributor of liquor to real estate developer and property manager.
An unusual change of direction perhaps, but the company, first known for its amaretto, made and bottled in its hometown of Saronno, Italy, expanded its operations and stuck it out through the downs and ups of the real estate market. It now has a portfolio of 400,000 square feet of office and industrial space in Somerset and Middlesex counties, and has plans to develop a 500-acre site in Readington for residential, retail and office use.
The company still operates as Illva Saronno, with two real estate affiliates, International Management Group LLC and International Realty Group LLC. These units were formed last summer in a move to expand from ownership of real estate to providing real estate services. International Realty Group is a joint-venture brokerage unit headed by Richard J. Gelmetti and International Management Group is led by Richard J. Ciallela. Meanwhile, the company still makes the amaretto and other liquors in Italy, although its U.S. bottling operation was closed down in 1987. Angelo Reina,...