A project by Bolton Development would bring 350 apartments, 8,500 square feet of retail space and a 178-space parking garage to the corner of University Avenue and Orange Street in downtown Newark. — Courtesy: Bolton Development
By Joshua Burd
A developer has secured a $90 million tax credit award for its plan to build a 14-story, 350-unit apartment building just south of Newark’s Broad Street station.
The applicant, an affiliate of Bolton Development, received approval for the Aspire subsidy during the state Economic Development Authority’s monthly board meeting on Tuesday, according to attorney Chris J. Murphy of Murphy Schiller & Wilkes LLP. The incentive would support a project at 32 University Ave. that calls for a mix of apartments as well as 8,500 square feet of retail space and a 178-space parking garage, in a location that is across the street from Rutgers Business School and Audible’s headquarters at 1 Washington Place.
The development, which would repurpose a parking lot at the Orange Street intersection, would also add to the growing neighborhood around Harriet Tubman Square and at the northern end of Newark’s central business district. Other nearby anchors include Whole Foods, Prudential Financial and the New Jersey Performing Arts Center.
Murphy, a partner with Newark-based MSW, represented Bolton in its application for the Aspire tax credit award. The firm also represented the developer in obtaining land use approvals and a 30-year payment in lieu of taxes agreement with the city.
“The Aspire Program aims to expand housing options, increase affordability and create stronger communities,” said Tim Sullivan, the EDA’s CEO. “Transit-oriented development is an integral part of Governor Murphy’s mission to revitalize neighborhoods and is a key focus of the Aspire Program. The proximity of today’s project to NJ Transit’s Broad Street Station and the city’s downtown makes it ideal for families, commuters, and students and will help create a more prosperous Newark.”
The $90 million tax credit package represents 60 percent of eligible project costs of $150 million, the EDA said. In announcing the approval, the authority noted that Aspire is meant to support mixed-use, transit-oriented commercial and residential real estate development projects that have financing gaps, adding that all residential Aspire projects must include at least 20 percent affordable housing.
“When we created the Aspire Program it was with the intention of facilitating greater investment in our communities and breathing new life into underutilized spaces,” said Senate Majority Leader Teresa Ruiz, a Democrat based in Newark. “This project will do just that, taking a parking lot and using it to spur economic development. The site will still offer parking, but will also help with housing shortages, providing market-rate and affordable units, in addition to retail space, all within walking distance to a major transit station.”
The EDA added that 70 units of the project will be reserved as affordable units. Residents will have access to amenities such as a pool, a health club, a spa, work-from-home space and electric vehicle charging stations.
“This Aspire award helps realize Newark’s Transit Village strategy for building mixed-use developments combining high quality affordable and market housing with retail and commercial space,” Newark Mayor Ras J. Baraka said. “The Broad Street Station will anchor a vibrant neighborhood and vital transportation hub. This is the kind of project that helps realize the dreams of residents to remain in the city they love, and improve their quality of life. The New Jersey Economic Development Authority’s $90 million in tax credits is critical to making this development affordable to Newark residents. All of Newark is grateful for NJEDA’s commitment to our city’s well-being and growth.”
Bolton, which is based in Washington, D.C., describes itself as a real estate firm specializing in mixed-use urban developments between New York and its home city.
