NEWARK, New Jersey, November 1, 2021 / PRNewswire / – Fairstead, a goal-oriented vertically integrated real estate company committed to sustainability and the creation and preservation of high quality housing, and LIHC Investment Group today announced the acquisition of the Essex portfolio Plaza, a fully affordable, housing portfolio in Newark, New Jersey which houses the elderly and families. In partnership with government officials and community organizations, Fairstead and LIHC will invest more than $ 27 million for lasting renovations and upgrades, as well as on-site support services, for the 450-unit seniors’ residence at 1060 Broad Street, also known as Essex Plaza One, with further upgrades to come for the other twelve buildings in the portfolio.
“As part of our commitment to a stronger and fairer society New Jersey has always been to provide basic necessities to those who need them, ”said Governor Phil Murphy. “The acquisition and renovation by Fairstead 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. “
Last week, Fairstead announced a new equity engagement of $ 500 million strategically develop the company’s operations, including expanding its multi-family housing portfolio and enhancing the company’s accessory technology, sustainability and community impact programs for residents across the country. Fairstead will act as the lead developer, general contractor and property manager for Essex Plaza One.
“Cities across the country are grappling with the affordability crisis so residents – particularly vulnerable neighbors – can stay at home and in their community. Fairstead takes up this challenge. We are making major commitments to create and preserve sustainable housing and stimulate innovation that will revitalize our cities, ”said Jeffrey Goldberg, CEO of Fairstead.
“We are proud to join with Fairstead in revitalizing hundreds of homes for working families and the elderly in accordance with the City of Newark affordable housing strategy, ”said Charlie gendron, director of the 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 it most.
To kick off Fairstead’s partnership with the community, a recruitment fair will be held on November 17e of 10 a.m. to 2 p.m. To Newark Town hall. Anyone interested in construction work can attend to learn more about opportunities including general labor, masonry, carpentry, tile, Placoplâtre / tape, paint, plumbing , electricity and HVAC work. Fairstead will also be hosting a Thanksgiving celebration and community day for residents of Essex Plaza on November 20e with food, entertainment and access to community resources.
“At the Essex Plaza portfolio, we provide hundreds of seniors and families with beautiful, safe and stable homes for generations to come through our partnership with the community and the dedication of our elected leaders, Governor Murphy and the mayor Baraka ”, declared Brett Meringoff, Managing Partner, Development, at Fairstead.
The revitalization of the Essex Plaza portfolio is being done in partnership with the New Jersey State, the City of Newark Department of Economic & Housing Development, New Jersey Housing and Mortgage Finance Agency and US Department of Housing and Urban Development, with funding for Essex Plaza One provided by Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs) and Berkadia.
“The Essex Plaza 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 for renovations and support services at Essex Plaza One, a major retirement home. This is a valuable contribution to achieving the five-year fair housing targets of Mayor Baraka, ”said Allison Ladd, City of Newark Deputy Mayor and Director, Economic Development and Housing.
“Goldman Sachs is proud to partner with Fairstead on this project, which reinforces the company’s long-standing commitment to the City of Newark,” noted Yarojin Robinson, Vice President of Urban Investment Group at Goldman Sachs. “Essex Plaza One is directly responding to community demand by expanding the supply of affordable, high quality and dedicated senior housing, with the goal of ensuring that many Newark the oldest residents can continue to thrive in the city they call home. “
“Berkadia is delighted to come together with the team of experts at Fairstead to preserve Essex Plaza, such an important asset for the Newark community,” noted Matthew Napoleon, Senior Managing Director at Berkadia. “Once again, the Fairstead team uses the full breadth of our debt solutions to $ 104 million in debt financing through three separate products for this important portfolio deal, ”said Gemma Geldmacher, senior manager at Berkadia.
“Creating and maintaining affordable housing is a top priority for HUD, and improvements to Essex One, Two and Three will provide housing and financial stability for 691 families in Newark,” said Justin sheid, Director of the HUD Newark Field Office.
“The transformation we are seeing downtown Newark reflects years of work by local and state leaders to cultivate an inviting climate for local investment by industry leaders like Fairstead. This investment involves not only an acquisition, but a commitment to undertake substantial rehabilitation and upgrades, ensuring that seniors who currently live at 1060 Broad Street can stay in their homes to enjoy the benefits of this redevelopment, ”said Melanie Walter, Executive Director of the New Jersey Housing and Mortgage Finance Agency.
Dane Global represented the buyer and seller in the transaction.
“Refurbishing hundreds of affordable housing units to high quality standards will further improve housing in these communities. Newark the elderly and families. The level of renovation Fairstead & LIHC will complete is sure to change the lives of residents. Dane Global has been honored to work with all parties to this important acquisition to preserve affordable housing while connecting residents with the services they need to continue to improve their lives, ”said Heidi burkhart, president of Dane Global.
The Essex Plaza wallet is located in historic Lincoln Park in Newark, a few steps from Newark City Hall, Newark Symphony Hall and Prudential Center.
Essex Plaza One at 1060 Broad Street will be the subject of a major $ 27 million Beginning of renovation work expected by the end of the year. Seniors will receive brand new Energy Star appliances, upgraded finishes including quartz countertops, new window treatments, flooring and more to keep their apartments looking new. Fairstead will also provide Internet and wired access to all units with a service included in the residents’ rent. Part of the housing will be upgraded to UFAS accessibility standards so that residents with reduced mobility can have accessible housing.
Across the site, new lighting and signage will be installed as well as new security cameras, new windows, improved elevator equipment and sidewalk repairs. The community hall and accompanying kitchen will be completely renovated and a brand new fitness center will be created for residents’ use. A full-time Resident Services Coordinator will be on hand to provide access to health, medical and other social services, as well as organize events and programs for residents.
The remainder of the portfolio includes 241 family housing units spread across 12 buildings in the surrounding blocks that will be subject to future upgrades that will also be funded by the New Jersey Housing Mortgage Finance Agency. The portfolio is supported by a rental assistance contract with HUD.
Fairstead is a goal-oriented, vertically integrated real estate developer specializing in the creation of high quality, sustainable housing. Since 2014, Fairstead has acquired or developed more than $ 4 billion owned. With offices in new York, Maryland, and Caroline from the south, the Fairstead team manages more than 90 communities across the country and manages its comprehensive real estate platform, which includes acquisitions and development, venture capital investments in prop technology, design and construction, energy and sustainability, property management, marketing and leasing. The company also administers one of the most proactive community impact programs in the industry to provide on-site support services to residents. For more information visit www.fairstead.com.
About the LIHC investment group
Led by Charlie and André Gendron, LIHC Investment Group has grown into one of the industry’s most respected real estate investment groups. The company owns an interest in more than 38,000 multi-family housing units nationwide, the vast majority of which are affordable. Our expertise in preservation transactions means we know how to work creatively and deliver results that benefit owners, investors, tenants and the community. To learn more, visit: https://lihc.com/
Jovana rizzo, Fairstead
CJ Mayer, BerlinRosen
Kelly magee, LIHC Investment Group