Fairstead and LIHC are working in partnership to complete major upgrades and facility improvements across 13 affordable housing buildings in Newark, New Jersey. Referred to as the Essex Plaza portfolio, the collection of buildings comprises 691 affordable apartments, many of which are reserved for senior households.
The 13-building portfolio was acquired by Fairstead and LIHC earlier this year. All the buildings are located in Newark’s Lincoln Park Historic District, just steps away from Newark City Hall, Newark Symphony Hall, and the Prudential Center.
The first phase of renovations will commence at Essex Plaza One, a 450-unit senior housing property at 1060 Broad Street. For this building, a $27 million investment will fund the installation of new Energy Star appliances and upgraded finishes including quartz countertops, new window treatments, and flooring repairs. The project will also bring internet and cable access to apartments, a service that will be bundled into monthly rent. A portion of the units will be brought up to Uniform Federal Accessibility Standards to improve the resident experience for the mobility impaired.
Amenity improvements include a refurbished community room and accompanying kitchen, a new fitness center, and a full-time resident services coordinator who will curate year-round programming and help connect residents to health, medical, and social services.
Fairstead will serve as the lead developer, general contractor, and property manager for Essex Plaza One. Financing for Essex Plaza One is provided by Berkadia and the Urban Investment Group, a division under the Goldman Sachs Asset Management umbrella.
“Cities across the country are grappling with the crisis of affordability so that residents—especially vulnerable neighbors—can stay in their homes and in their communities,” said Jeffrey Goldberg, CEO of Fairstead. “Fairstead is stepping up to this challenge. We are making major commitments to create and preserve sustainable housing and drive innovation that will revitalize our cities.”
Throughout the complex, the project calls for new lighting, building signage, security cameras, upgraded elevator equipment, and sidewalk repairs.
“We are proud to join Fairstead in revitalizing hundreds of homes for working families and seniors in line with the City of Newark’s affordable housing strategy,” said Charlie Gendron, principal of LIHC Investment Group. “We are grateful for the support of our public and private partners in preserving and expanding safe and affordable housing opportunities for those who need them most.”
To complete the renovation, the developers have partnered with the State of New Jersey, the City of Newark’s Department of Economic & Housing Development, the New Jersey Housing and Mortgage Finance Agency, and the US Department of Housing and Urban Development.
The remainder of the portfolio includes 241 units of family housing across 12 buildings in the surrounding blocks. The next phase of rehabilitation will also be financed through the New Jersey Housing Mortgage Finance Agency. The portfolio is supported by a rental assistance contract with HUD.
“The transformation that we are seeing in downtown Newark reflects years of work by local and state leaders to cultivate an inviting climate for local investment by industry leaders like Fairstead,” said Melanie Walter, executive director of the New Jersey Housing and Mortgage Finance Agency. “This investment involves not just acquisition, but a commitment to undertaking substantial rehabilitation and improvements, ensuring that the seniors who currently live at 1060 Broad Street can remain in their homes to enjoy the benefits of this redevelopment.”
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The former “Industrial Office Building”