The Art Factory at 70 Spruce St. in Paterson — Courtesy: Investment Property Realty Group
By Joshua Burd
Procida Funding has completed its sale of a well-known industrial complex and redevelopment site in Paterson, in a deal arranged by Investment Property Realty Group.
The buyer, which was not disclosed, paid $6 million for the 25-building, 230,922-square-foot property at 70 Spruce St. and now plans to pursue approvals for a mixed-use residential project that the listing team said will bring meaningful, community-oriented density to the area. That’s likely to include preserving the historic nature of what’s commonly known as The Art Factory — marked by its exposed brick, heavy timber framing, soaring ceilings and cobblestone courtyards — with plans that also include ground-floor commercial or cultural space and amenities designed to serve both future residents and the broader Paterson community.
IPRG Partner Yanni Marmarou and Associate Homer De Leon represented Procida in the deal, noting that the property had gone to auction in spring 2025 with an asking price of $3.3 million but received no bids. Procida then tapped the firm to run a structured private marketing process, resulting in a contract late last year for a sale that closed on May 6 at nearly double the auction’s unsuccessful credit bid.
“The Art Factory is one of the most singularly iconic properties we have ever had the privilege of bringing to market,” Marmarou. “Its scale, its history, its location in the heart of the Great Falls district and the sheer transformative potential of its 4.73 acres made it a rare opportunity — and one that attracted a buyer who genuinely understands the significance of what this site can become for Paterson. We are proud to have delivered a successful outcome for Procida Funding and look forward to watching this property evolve into a community asset.”
The sale follows IPRG’s successful disposition of Procida’s University Heights portfolio in Newark in the third quarter of 2025, the brokerage team said, touting its continued partnership with one of the region’s most active and community-focused capital providers. The firm added that the neighborhood around 70 Spruce St. has emerged as one of the most active adaptive reuse corridors in the tristate area, with multiple comparable projects demonstrating the market’s appetite for residential conversion.
They include:
- Mill Street Square (74 affordable units)
- Essex Phoenix Mills (145 affordable units)
- Hamilton Square (68 affordable units)
- 24+Half at 24½ Van Houten St. (a mixed-use conversion with residences, coworking and a food hall)
- 305–329 Pennsylvania Ave. (a recently completed project with 171 market-rate units)
IPRG also said the site’s historic significance — located within a nationally designated historic district adjacent to the Paterson Great Falls National Historical Park — positions it as a compelling candidate for Historic Tax Credits as part of a broader incentive strategy.
“The Great Falls corridor continues to attract sophisticated developers and investors who recognize that the fundamentals here — location, infrastructure, historic character and strong public investment — are among the best in the entire state,” De Leon said. “This transaction is another proof point that the Great Falls market is ready for the next chapter.”
IPRG continues to market another Paterson property — 466-480 Totowa Ave., also known as the Great Falls Lofts site — on Procida’s behalf. The fully approved development site calls for a 127-unit, mixed-use adaptive reuse project involving the conversion of the historic Miesch Silk Manufacturing Co. mill, originally constructed in 1907, into 80 residential loft apartments, alongside a new building with another 47 homes, 6,779 square feet of ground-floor retail and 138 parking spaces.
The Great Falls Lofts site carries city planning board approval, sits within a federally designated Qualified Opportunity Zone and is potentially eligible for a full stack of tax credits and subsidies — making it one of the most incentive-rich development opportunities currently available in the New Jersey market, the listing team said. Both the Art Factory and the Great Falls Lofts are part of a district off Interstate 80 that has attracted more than $200 million in coordinated public and private investment, anchored by the reopening of the landmark Hinchliffe Stadium, the newly opened Vista Park above the Paterson Great Falls National Historical Park, the $15 million revitalization of Westside Park and a $7.9 million expansion of the Great Falls Riverwalk.
IPRG: Procida seeking buyer for fully approved 127-unit loft project in Paterson’s Great Falls
