The Atlantic City skyline
By Joshua Burd
A developer has secured a key tax credit award for its plan to convert a historic office building in Atlantic City into 56 loft-style apartments and commercial space.
The state’s Economic Development Authority last week announced the approval of the $8 million subsidy, which it pledged under its Historic Property Reinvestment Program. The tax credit will support the long-awaited Atlantic Lofts project at 1 South New York Ave., which would rehabilitate the underutilized Schwehm Building in the city’s downtown.
The EDA’s board awarded the incentive to Atlantic Lofts Urban Renewal Entity and Odin Forward, noting that the proposed tax credit equates to 45 percent of eligible project costs, up to $8 million, and will result in a total overall investment of $22.5 million in Atlantic City.
“The HPRP advances Governor Phil Murphy’s efforts to revitalize New Jersey communities by rehabilitating dormant or underutilized historic properties, resulting in long-term economic benefits and quality-of-life improvements for residents,” said Tim Sullivan, the authority’s CEO. “The Atlantic Lofts Rehabilitation Project will preserve the historic Schwehm Building for future generations, create new housing and commercial spaces and contribute to the resurgence of Atlantic City’s Orange Loop district.”
According to the EDA, the project consists of a complete rehabilitation of the eight-story office building. Amenities for residents would include a new roof deck and commercial space on the first floor.
They added that the HPRP, which was created under the New Jersey Economic Recovery Act of 2020, is designed to work in conjunction with the Federal Historic Tax Credit Program and is subject to an annual program cap of $50 million, with annual unused amounts included in the amounts available for approval in the subsequent year. The EDA opened a new application round for the subsidy on Sept. 10 and will close it on Oct. 29 at 2 p.m.
