NJ Grants $74M Tax Break For Newark Apartment Building

NEWARK, NJ — Another large real estate project in Newark has been greenlighted for a multi-million-dollar state tax break, officials recently announced.

The board of the New Jersey Economic Development Authority (NJEDA) approved up to $74 million in tax credits for a mixed-use residential development project at 260-272 Washington Street in Newark.

The project – known as The Metropolitan – will bring 207 apartment units to the downtown area, 67 of which will be “affordable.” When it’s complete, the 23-story apartment complex will also have 4,000 square feet in retail space on the ground floor.

The developer has demolished the site’s existing buildings, but plans to retain the historic façade on the new building.

State officials said the project intends to incorporate the “Good Neighbor Program,” which will allow tenants to receive credits toward their rent in exchange for volunteering at a local nonprofit organization in Newark.

The tax credits – awarded under the state’s Aspire Program – represents 60 percent of eligible project costs of $123.8 million, according to the NJEDA.

Eligibility requirements for the Aspire program include showing that the proposed project will “result in a net positive benefit to the state,” and that it wouldn’t be “economically feasible” without the tax break. All residential projects must include 20 percent affordable housing, with the exception of those that are solely renovations and don’t include the creation of new units.

The applicants are the Hanini Group LLC, which has a 75 percent stake, and Shift Catalyst, which has a 25 percent stake. Other recent real estate projects completed by the Hanini Group and its affiliates include Hahne & Co., Hotel Indigo, and The People’s Bank Building in Passaic.

“This is a win-win for our city,” Mayor Ras Baraka said.

“This mixed-use residential development project contributes to many of our goals: revitalizing our downtown, offering more affordable housing for our residents, and helping to strengthen our economy,” he added.

The tax credit approval also got a thumbs-up from two state lawmakers who represent Newark in the 29th District.

“This forward-thinking project is an exciting step forward in revitalizing downtown Newark in an inclusive, innovative way that respects the unique needs of our community,” Sen. Teresa Ruiz said.

“The Metropolitan embodies the spirit of the Aspire program,” agreed Assemblywoman Eliana Pintor Marin.

ASPIRE IN NEWARK

The NJEDA has recently awarded Aspire tax credits to several other large housing projects in Newark.

In March, the agency approved tax credits for a housing project at 930 McCarter Highway across from the New Jersey Performing Arts Center. The 25-story high-rise building will have 265 market rate units and 68 affordable units. See Related: Another Large Housing Project In Newark Gets Tax Break From NJ

In February, state officials announced that construction project that will create an apartment and commercial building near the New Jersey Performing Arts Center – which has been dubbed as the “NJPAC District” – has been approved for a tax credit that can potentially reach 60 percent of the total eligible project costs, up to a maximum of $199.69 million. It will include a residential component, known as ‘ArtSide,’ which will be comprised of 350 units of housing. Read More: Real Estate Project Near NJPAC In Newark Gets Huge Tax Break From NJ

In September 2023, the state agency approved up to $90 million in tax credits for a new, 14-story building at 81-93 Orange Street, which is located across the street from NJ Transit’s Broad Street Station. Read More: NJ Approves $90M Tax Break For Housing Project In Newark

Last June, a 23-story high-rise project in the city’s downtown Central Business District was approved for nearly $50 million in potential tax breaks. The location is within walking distance of Newark Penn Station, the Newark Light Rail, and several bus stops. Read More: High-Rise In Newark With Affordable Units Gets $50M Tax Break From NJ

And last July, the NJEDA announced that a new affordable housing building for seniors – the Terrell Homes project – will get an $8.9 million boost. Read More: Affordable Senior Housing Building In Newark Gets $8.9M Tax Credit

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