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Christie Administration Marks Groundbreaking of $45.3M Affordable Housing and Retail Project in Newark’s Historic High Street District
Home > Media Room > HMFA in the News > News 2017 > Christie Administration Marks Groundbreaking of $45.3M Affordable Housing and Retail Project in Newark’s Historic High Street District
For Immediate Release: Contact:
July 28, 2017 Tammori Petty
Emike Omogbai
(609) 292-6055
 

Christie Administration Marks Groundbreaking of $45.3M Affordable Housing and Retail Project in Newark’s Historic High Street District


High Res Photo [jpg 2.4MB]

Left to Right: Fausto Baez (NHA Board Member), Timothy Henkel (Pennrose), Freeholder Bonnie Watson, Ms. Dianne Johnson, Rahim Islam (One Real Estate), Ellen Harris (NHA), Maria Maio-Messano (HUD), Anthony Marchetta (NJHMFA), Morris Warner (NHA), Councilwoman Gayle Chaneyfield Jenkins (Central Ward Councilwoman), Julio Colon (City of Newark), Eddie Osborne (Councilman at Large), and Laura Bailey (Capital One Bank, NA).  

Montgomery Heights II Will Provide Affordable Rental Units for Working Families

NEWARK, NJ – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today joined Newark Mayor Ras Baraka, representatives of Pennrose Properties, the Newark Housing Authority and other local officials to celebrate the groundbreaking of a $45.3 million project to build 154 affordable rental apartments in Newark’s historic High Street District.

Montgomery Heights II will be constructed on the former Brick Towers site centrally located on Martin Luther King Boulevard close to a number of other redevelopment projects. Of the 154 low- to moderate- income units, 132 will be housed in a five-story, elevator-serviced building, and the remaining 22 will be in four townhouse-style buildings. The development will offer 1- 2- and 3-bedroom rental units and 7,000 square feet of retail space.

The apartments will include full kitchens, carpeting and central air conditioning. Community amenities will include a fitness center, media room and on-site parking. The units will be affordable to residents earning between 50 percent and 60 percent of Area Median Income. Monthly rents will range from $440 to $1,477. The project is expected to be completed by October 2018. 

HMFA is investing $21.3 million in construction and permanent financing. The developers, Pennrose Properties and One Real Estate of Philadelphia, have applied for federal 4 percent Low Income Housing Tax Credits, which are expected to generate $16.9 million in private equity. Montgomery Heights II will be developed in cooperation with the Newark Housing Authority, which is providing $12 million in capital bond funding and $5.5 million in Up Front Grant funds. The first phase of this project has already provided 80 homes, which also included HMFA funding. 

“Our Conduit Bond program, which is the source of the HMFA financing, is a key tool to help developers expand the reach of their investment,” said HMFA Executive Director Marchetta. “This development represents a significant investment in this neighborhood of modern housing that will benefit the residents and the community.”

HMFA estimates that Montgomery Heights II will generate approximately $71.8 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the project will support approximately 430 direct and indirect/induced full-time equivalent jobs, and generate nearly $2.6 million in state and local taxes. When completed, Montgomery Heights II is expected to continue to add value to the community by providing approximately $8 million in ongoing economic output, 45 direct and indirect/induced full-time equivalent jobs, and over $452,000 in state and local taxes annually. 

Economic Impact Analysis figures were estimated using multipliers derived from a 2013 study entitled “Economic and Fiscal Impacts of the New Jersey Housing and Mortgage Finance Agency’s Investment in Affordable Housing,” conducted by HR&A Advisors, Inc., a real estate and economic development consulting firm.

With more than 40 years of experience, Pennrose combines quality development and proven management to deliver lifestyle-centered communities for its residents. With the knowledge and dedication to get the job done right, Pennrose develops and operates both conventional and affordable communities throughout the eastern half of the United States. For more information, visit www.pennrose.com.

For more information on HMFA programs, visit www.njhousing.gov.