Restored Hahne & Co. Building to Provide 160 Mixed-Income Rental Homes
NEWARK, NJ – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta recently joined local, state, federal and community leaders, representatives of L+M Development Partners Inc., Prudential Financial, and the Goldman Sachs Urban Investment Group to celebrate the grand opening of Hahne & Co, an adaptive reuse project of a former upscale downtown Newark department store, which includes mixed-income rental apartments, retail and commercial space in Newark, Essex County.
The project, located at 609-633 Broad Street, offers 160 affordable and market rate apartments made up of studios and one, two- and three-bedroom units. Sixty-four apartments were created for households earning 60 percent or less than the Area Median Income and 96 apartments are market rate. The project provides amenities such as a residential exercise facility, a green terrace, on-site security, a community room and in-unit laundry facilities.
“The HMFA is thrilled to provide over 50 percent of the total development cost for this adaptive reuse project that transforms a national landmark into a modern affordable residential and retail community for individuals and families,” said Executive Director Marchetta. “This project is a remarkable example of how collaborative partnerships act as the catalyst to providing a blend of affordable and market rate rental housing, within a mixed-use, retail setting, while it increases community diversity, expands the local tax base, drives economic growth and strengthens the long-term vitality of the community.”
In addition to the newly created apartments, the project includes approximately 175,000 square feet of retail and commercial space that includes a Whole Foods Market and a center for Rutgers University’s Department of Arts, Culture and Media, featuring a 250-seat auditorium-style classroom and studio and gallery space. Hahne & Co. sits squarely within downtown Newark – across from Military Park, adjacent to the new 20-story Prudential office tower, within walking distance of Rutgers University and New Jersey Institute of Technology buildings, New Jersey Performing Arts Center and the NJ Historical Society.
When prominent local businessman Julius Hahne built the Hahne & Co. department store on Broad Street in Newark in 1901, the four-story flagship structure was described as “one of the largest and most elegant stores in America” by the Newark Daily Advertiser. Lavishly appointed with grand staircases, elaborate wrought-iron banisters and tall windows, Hahne’s became nationally renowned. For nearly 85 years, this 400,000-square-foot landmark stood as the crown jewel of downtown Newark with a loyal following of the city’s wealthiest families. The store closed in 1986 and for the next 29 years, this once magnificent retail palace stood vacant and boarded up – a long lingering vestige of the golden age of department stores.
In 2015, public and private partners crafted a plan to transform the historic building into a thriving, modern residential and retail community. The partnership between the New Jersey Housing and Mortgage Finance Agency (NJHMFA), New Jersey Economic Development Authority (EDA), National Park Service, L+M Development Partners Inc., Prudential Financial, and Goldman Sachs Urban Investment Group led to the rehabilitation of the Hahne’s building. The restoration of the building also included preserving the original 200-foot-long skylight. Natural light will once again cascade over the upper levels and combine the old glory of Hahne & Co. with the new resources needed to sustain a vibrant downtown community.
The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), provided Hahne & Co over $66 million in financing through its Multifamily Conduit Bond Program and approved the project four percent federal Low Income Housing Tax Credits (LIHTC), which will provide up to $13 million over 10 years.
HMFA estimates that the Hahne’s Building redevelopment, which cost approximately $121 million to develop, generated almost $192 million in one-time economic output, approximately 1,148 direct and indirect/induced full-time jobs, and $7 million in state and local taxes during construction. Now complete, the project will continue to add value to the community by providing more than $21.4 million in ongoing economic output, 121 direct and indirect/induced full-time jobs, and approximately $1.2 million in state and local taxes annually. Other funding sources for the restoration of Hahne’s include Citibank, New Jersey EDA, the Federal Historic Tax Credit, and Prudential.
The Hahne’s Building Conversion is being developed by L+M Development Partners, Inc., which has developed quality affordable, mixed-income and market rate housing that improves the neighborhoods to which they belong since 1984.
For more information on HMFA programs, including the Multifamily Conduit Bond Program, please visit www.njhousing.gov.