WALL — AvalonBay Communities hopes to build a 550-unit multifamily development at the site of what was once Peddler's Village, a now dilapidated shopping center on Atlantic Avenue.

The real estate company, based in Arlington, Virginia, is the contract purchaser of the nearly 22-acre property at the intersection of Route 35 and Atlantic Avenue. It touted its concept plan to township officials in May.

But after meeting, the township "rejected" Avalon's proposal, according to court papers filed by AvalonBay's lawyers, John P. Inglesino and Derek W. Orth of Parsippany, earlier this month.

Now AvalonBay has asked a judge, who is overseeing litigation around the township's affordable housing plan, to direct the township to review its plan and discuss it with AvalonBay "in good faith."

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Township Administrator Jeffry Bertrand said the township's answer to AvalonBay's court papers is due on June 30. Township staff had met with AvalonBay's representatives for about 40 minutes, he added.

Peddler's Village was built in 1959 and was a shopping destination for decades until it fell into disrepair over time as stores moved out. Concrete blocks now block access to the parking lot.

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In 2018, the Wall Township Committee designated the property an area in need of redevelopment — a land use designation that allows municipalities to override current zoning regulations and install tax incentive for developers to inject life into a site.

A redevelopment plan, which included no more than 350 rental apartments, a hotel, retail and office space, was introduced a year later but never adopted after a community outcry.

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The Peddler's Village property also was included as a part of housing plan settlement between the township and Fair Share Housing Center, Inglesino wrote in a May letter to the township. The settlement was approved by a judge in 2020.

"As acknowledged by the township, the property is ripe for redevelopment as it is currently occupied with a vacant retail shopping center, which was constructed in 1959," the letter states.

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As part of its concept plan, Avalon proposes the construction of a 550-unit multifamily community with various building types, including mid-rises, stacked flats and townhouses as well as tenant amenities, a clubhouse/leasing office and parking facilities, the letter states.

Further details were not available.

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In Monmouth County, AvalonBay has an apartment community in West Long Branch. It sold a 216-unit apartment complex in Tinton Falls to a private buyer in 2020, according to JLL Capital Markets.

David P. Willis, an award-winning business writer, has covered business and consumer news at the Asbury Park Press for more than 20 years. He writes APP.com's What's Going There column and can be reached at dwillis@gannettnj.com. Join his What's Going There page on Facebook for updates.

This article originally appeared on Asbury Park Press: Developer wants Wall to take new look at 550 Peddler's Village homes