Fairstead and LIHC Investment Group recently announced the acquisition of the Essex Plaza portfolio, a portfolio of 691 affordable housing units in Newark that houses seniors and families, and will be revitalized in partnership with the State of New Jersey, the City of Newark Department of Economic Development and Housing, the New Jersey Housing and Mortgage Finance Agency, and the US Department of Housing and Urban Development. Funding for Essex Plaza was provided by Urban Investment Group within Goldman Sachs Asset Management and Berkadia.
The partnership, along with representatives from government and community organizations, will invest more than $ 27 million for renovations and upgrades, as well as on-site support services for a 450-unit retirement home at 1060 Broad St. , also known as Essex Plaza One. , with further improvements to come for the 12 remaining buildings in the portfolio.
âPart of our commitment to a stronger, fairer New Jersey has always been to provide essentials to those in need,â Gov. Phil Murphy said in a statement. “Fairstead’s acquisition and renovation of an affordable housing stock in Newark will go a long way in ensuring that residents of the state’s largest city, especially its seniors, have a place to call home at a reasonable price.” . “
The Essex Plaza portfolio is located in historic Lincoln Park in Newark, a short walk from Newark City Hall, Newark Symphony Hall, and Prudential Center.
The remainder of the portfolio includes 241 family housing units spread over 12 buildings in the surrounding blocks which will be subject to future upgrades which will also be funded by the NJHMFA. The portfolio is supported by a rental assistance contract with HUD.
âCities across the country are grappling with the affordability crisis so that residents – especially vulnerable neighbors – can stay in their homes and in their communities. Fairstead takes up this challenge. We are making major commitments to create and preserve sustainable housing and drive innovation that will revitalize our cities, âsaid Jeffrey Goldberg, CEO of Fairstead.
âEssex Plaza’s all-affordable housing portfolio is an important part of the housing stock that Newark residents can afford. It is especially good news that Fairstead has purchased these buildings and intends to invest more than $ 27 million in renovations and support services at Essex Plaza One, a major retirement home. This is a valuable contribution to achieving Mayor (Ras) Baraka’s five-year equitable housing goals, âsaid Allison Ladd, Deputy Mayor and Director of Economic Development and Real Estate for Newark.
Danish Global represented the buyer and seller in the transaction.