A joint venture of L+M Development Partners, Type A Projects and MSquared is planning to build 78 affordably priced and supportive apartments on West Market Street in Newark’s West Ward, as depicted in this rendering, creating a gateway to University Hospital. — Courtesy: L+M
By Joshua Burd
A development team has closed on $42 million in financing for a project that will bring 78 affordably priced apartments to an area just north of Newark’s University Hospital.
The joint venture — which includes L+M Development Partners, Type A Projects and MSquared — plans to build the units on West Market Street under a state program that connects health care and residential operators. The firms are forging ahead with a diverse mix of public and private capital, with construction now set to begin in the coming weeks.
“As part of our ongoing commitment to Newark, we are proud to develop another project that will provide two critical resources to the Fairmount neighborhood — quality affordable housing and access to health care,” said Jonathan Cortell, a managing director at L+M Development Partners. “A core part of our mission at L+M is to improve the quality of life for our residents and vulnerable communities, and this project exemplifies just how far our impact can go. Thanks to all our partners for their work in reaching this important milestone and we look forward to bringing this development to the community.”
Designed by Alex Merlucci at Inglese Architecture and Engineering, the development will repurpose a portion of the Georgia King Village property. Plans call for 78 rental units that will serve low- and moderate-income households, 16 of which will be reserved for homeless individuals and families, with the support of project-based rental vouchers from the state Department of Community Affairs’ Housing Choice Voucher Program. The complex will also be a recipient of 30 project-based rental vouchers from the Newark Housing Authority.
In addition, the building will include a ground-floor clinic and office space operated by University Hospital, which will enhance social services throughout the neighborhood by providing much-needed outpatient medical care to an at-risk population.
“The Hospital Partnership Subsidy Program began with a very simple premise: Housing is health care. Where and how people live affects their well-being,” said Melanie R. Walter, executive director of the New Jersey Housing and Mortgage Finance Agency. “This innovative program is a vehicle for hospitals to make impactful affordable housing and wellness investments in their communities. The high-quality apartment housing produced through these development partnerships also ensures resident access to critical resources including wraparound services for residents with special needs.”
HMFA will play a prominent role in the project’s capital stack, providing $22 million in mortgage financing, $1.6 million from its Special Needs Housing Trust Fund, $6 million from the Hospital Partnership Subsidy Program and $3.5 million from the Multifamily Rental Housing Production fund, according to a news release. Other capital sources include $18 million in tax credit equity from Wells Fargo, $3 million from University Hospital, $300,000 in HOME funds from the city of Newark and $300,000 in HOME funds from Essex County.
“Supportive housing has never been a more critical component in the equation of health care than it is today, and we are pleased to join with our state and local partners to develop this project in the heart of Newark,” said Dr. Shereef Elnahal, CEO and president of University Hospital. “This initiative will help us move more deeply into our long-term vision of chipping away at upstream social determinants of health, while creating positive and lasting health outcomes for our neighbors.
“Looking to our future, University Hospital must honor our original charter by focusing on the solutions that will bring dramatic change to our community.”
Newark Mayor Ras J. Baraka also noted that the project will achieve two of the city’s top priorities: providing residents with quality affordable housing and quality health care.
“This $42 million partnership will enable us to address both these needs simultaneously through collaboration and with compassion,” he said. “I congratulate this team on developing this important project that will continue to benefit our community for generations to come.”
University Hospital, one of the nation’s leading academic medical centers and the principal teaching hospital of Rutgers Biomedical and Health Sciences, is among the latest participants in the HMFA subsidy program. The initiative has helped spur similar projects in recent years by matching funding contributions from participating hospitals to provide affordable rental apartments for low- and moderate-income families, as well as homes with access to supportive and wrap-around services for residents with special needs.
“This financing is a tremendous step forward for a project that will have a lasting impact on area residents in finding and keeping affordable, supportive housing in the proximity of University Hospital,” said Lt. Gov. Sheila Oliver, who serves as commissioner of the Department of Community Affairs and HMFA’s board chair. “Governor Murphy and I are thrilled to see progress on this innovative hospital and housing partnership project that will help strengthen the Fairmount community. We look forward to coming back to celebrate its completion.”
Last week’s announcement drew comments from a host of other stakeholders:
Jill Crawford, principal of Type A Projects:
“Type A is honored to be a part of this unique public-private initiative bringing new community health and wellness resources alongside quality affordable and supportive housing to the Fairmount community. We are grateful to all our partners for supporting this important and timely project and for the collaborative process with University Hospital that will deliver high quality health care services tailored to the needs of the community.”
Newark Councilmember LaMonica McIver:
“This project has been designed with our community’s needs in mind, bringing much-needed affordable housing and important health services to our Fairmount neighborhood. I look forward to the project’s completion and the positive impact it will have on its future and existing residents.”
Newark Housing Authority Executive Director Victor Cirilo:
“The Newark Housing Authority continues to be a proud partner of L+M Development in the revitalization of the Georgia King Village community. This new phase will not only meet affordable housing needs, but also help address much needed medical services in the community.”
Essex County Executive Joseph N. DiVincenzo Jr.:
“We are proud to support this dynamic project that makes the first-class medical services provided by University Hospital directly accessible to our residents. This is another example of how vital University Hospital is to the health and wellness of our residents and the innovative ways that the delivery of health care services can be provided.”
Dr. Chris Pernell, chief strategic integration and health equity officer at University Hospital:
“Many of the patients and families in our care present with a complex web of social needs and chronic health conditions which are rooted in structural inequities in housing and decades of economic deprivation. Newark deserves a robust system of high-quality primary and preventive care and culturally fluent social support structures that allow communities who have experienced a legacy of neglect to obtain the chance for wellbeing and upward economic mobility. When completed, this project will foster a more positive environment for the most marginalized among us.”
Developers partnering with state, University Hospital for new affordable housing in Newark
