24 Jones in Newark — Courtesy: Tucker Development
Joshua Burd
A focus on “eds and meds” has been a key ingredient in many urban success stories.
For 24 Jones, one of the newest residential developments in Newark, the early returns show that to be a major part of a winning formula.
The 152-unit complex by Tucker Development Corp. reached the 50 percent leased threshold in late September, offering a snapshot of its renter pool about six months after opening its doors. At the time, more than 60 percent of those who had signed leases were people associated with the nearby higher education institutions, University Hospital or the city’s charter and public schools.
“It’s really become much more than just student-oriented housing because of its proximity, which is what I think a lot of people initially anticipated it to be,” said Robert Clark, Tucker’s senior vice president for development. “I think the depth of the market is good, but it speaks to fact that there hasn’t new product in Newark that’s market rate in quite some time.”
The property, wedged between Jones Street and Springfield Avenue, is part of a $92 million mixed-use redevelopment that also includes a new ShopRite. Known as Springfield Avenue Marketplace, the development sits just southeast of University Hospital and blocks from the New Jersey Institute of Technology, Essex County College and other schools.
The response from those populations has been tough to ignore: Clark said 26 students, mostly graduates, had signed leases at 24 Jones through late September, while about 10 doctors had committed to the complex during that period.
Tucker’s leasing team, led by The Marketing Directors, has seen that response and steered additional marketing dollars toward those areas. For instance, the LED message board inside the hospital cafeteria includes scrolling images of 24 Jones and leasing information.
The team is taking a similar approach at nearby residence halls.
“It could be as little as door hangers in some of the dorms with information about the project, advertising on the school transportation buses,” Clark said. “Each of those things is focused around the student population.”
For teachers, who make up another sizable piece of the renter base, Tucker has tried to be visible on days when charter schools hold contract signings, such as by setting up an information table and inviting them to the property for tours.
Tucker is now looking to expand its reach among police and government employees, especially given the site’s proximity to the Essex County offices and state and federal courthouses. The developer feels that the price point — ranging from roughly $1,700 for a studio to about $2,200 for a two-bedroom — will appeal to those professionals seeking new units at market rates.
“We want to keep hitting it hard and go after the proven areas of interested renters,” said Jeff Glenner, vice president of development with the Highland Park, Illinois-based firm. He added that, with close proximity to the courthouses and Newark’s central business district, “there are other areas for us to capture.”
It’s all part of an effort to transform a still-gritty stretch of Newark’s Central Ward. And while it’s still a relatively untested market for developers, the addition of new retail is expected to help.
That retail center is anchored by a new 70,000-square-foot ShopRite store, which employs more than 300 and has brought a state-of-the-art grocery store to a food desert. Clark said the business has also brought a high-end feel to the neighborhood and is “a great co-tenancy” for renters at 24 Jones.
“I think that’s a big selling point that our leasing office has been able to just point out the window and say, ‘You’ve got to walk through the store before you leave just so you can fully appreciate what’s here,” Clark said.
The project has also attracted a Taco Bell that opened this summer and a McDonald’s that is now under construction. Other eateries will open by the end of the year, while a beauty supply store, a nail salon and other businesses are expected to take occupancy by early 2017.
“We’re confident that, once we get some of these tenants open, it will only help the leasing velocity for the residential as well as the remaining retail,” Glenner said.
