NEWARK, New Jersey, November 1, 2021 / PRNewswire / – Fairstead, a purpose-built, vertically integrated real estate company committed to the sustainable development and creation and maintenance of high quality housing, and LIHC Investment Group today announced the acquisition of the Essex Plaza portfolio, a 691 unit , fully affordable apartment portfolio in Newark, New Jersey this is home to seniors and families. Working with government officials and community organizations, Fairstead and LIHC will do more than $ 27 million for sustainable renovations and improvements and on-site support services for the 450 unit retirement home at 1060 Broad Street, also known as Essex Plaza One, with further improvements for the remaining twelve buildings in the portfolio.
“Part of our commitment to a stronger and more just New Jersey has always been supplying the needy with essentials, “said Governor Phil Murphy. “Fairsteads Acquisition and Refurbishment of Affordable Housing in Newark will do a lot to ensure that the residents of the largest city in the country, especially their seniors, have affordable homes. “
Last week, Fairstead announced a new equity commitment from $ 500 million to strategically grow the company’s business, including expanding its multi-family home portfolio and enhancing the company’s prop-tech, sustainability and community impact programs for residents across the country. Fairstead will serve as the lead developer, general contractor and property manager for Essex Plaza One.
“Cities across the country are grappling with the affordability crisis, leaving residents – particularly vulnerable neighbors – can stay in their homes and in their communities. Fairstead rises to this challenge. We are making great commitments to create and maintain sustainable housing and to drive innovations that revitalize our cities, “said Jeffrey Goldberg, CEO of Fairstead.
“We are proud to partner with Fairstead to have hundreds of homes for working families and seniors in keeping with the times City of Newarks Strategy for Affordable Housing, “said Charlie Gendron, Director of the LIHC Investment Group. “We are grateful for the support of our public and private partners in maintaining and expanding safe and affordable housing for those who need it most.”
To kick off the partnership between Fairstead and the community, on November 17thNS from 10 a.m. to 2 p.m. at Newark The town hall. Anyone interested in construction jobs can participate to learn more about job opportunities, including general work, masonry, carpentry, tile, plasterboard / tape, painting, plumbing, electrical, and HVAC work. Fairstead will also host a Thanksgiving Celebration and Community Day for Essex Plaza residents 20th NovemberNS with food, entertainment and access to community resources.
“In the Essex Plaza portfolio, we offer hundreds of seniors and families beautiful, safe and stable homes for generations to come thanks to our partnership with the community and the commitment of our elected leaders, Governor Murphy and Mayor Baraka,” said Brett Meringoff, Managing Partner, Development, at Fairstead.
The Essex Plaza portfolio is being revitalized in collaboration with the State of New Jersey, the City of Newarks Department of Economic & Housing Development, the New Jersey Housing and Mortgage Finance Agency, and the US Department of Housing and Urban Development, with funding for Essex Plaza One being provided by the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs) and Berkadia will.
“The Essex Plaza portfolio of affordable housing is an important part of the housing stock that Newark Residents can afford. I am particularly pleased that Fairstead has purchased these buildings and intends to do more than $ 27 million for renovations and support services at Essex Plaza One, an important home for the elderly. This is a valuable contribution to the achievement of Mayor Baraka’s five-year fair housing goals, “said Allison Ladd, City of Newark Deputy Mayor and Director, Economic and Housing Development.
“Goldman Sachs is proud to partner with Fairstead on this project, which represents the company’s longstanding commitment to the city Newark,” called Yarojin Robinson, Vice President of the Urban Investment Group at Goldman Sachs. “Essex Plaza One is a direct response to community demand by expanding its inventory of affordable, quality, dedicated senior housing to ensure that many of Newarks The oldest residents can continue to thrive in the city they call home. “
“Berkadia is delighted to reunite with the team of experts at Fairstead to preserve Essex Plaza, such an important asset to the Newark Community, ” called Matthew Napoleon, Senior Managing Director at Berkadia. “Once again, the Fairstead team is taking advantage of the full range of our debt solutions and delivering over $ 104 million in leveraging three separate products for this important portfolio deal, “said Gemma Geldmacher, Senior Director at Berkadia.
“Creating and maintaining affordable housing is a top priority for the HUD, and improvements to Essex One, Two and Three will provide housing and financial stability to 691 Newark families,” said Justin Scheid, Field Service Manager at HUD Newark.
“The transformation we’re seeing in the city center Newark reflects the years of work by local and state leaders to create a welcoming climate for local investment by industry leaders like Fairstead. This investment includes not only the acquisition, but also a commitment to make significant renovations and improvements to ensure the seniors currently living on 1060 Broad Street can stay in their homes to enjoy the benefits of this renovation, ” said Melanie Walter, Executive Director of the New Jersey Housing and Mortgage Finance Agency.
Dane Global represented buyers and sellers on the transaction.
“The renovation of hundreds of affordable residential units to high quality standards will further enhance the homes of these people.” Newark Seniors and families. The amount of renovation that Fairstead & LIHC will complete will definitely change the lives of residents. Dane Global was honored to work with all sides of this important acquisition to maintain affordable housing while connecting residents with the services they need to continue to improve their lives, “said Heidi Burkhart, President of Dane Global.
Essex Plaza’s portfolio is located in the Lincoln Park Historic District of Newark, just a few steps away from Newark City Hall, Newark Symphony Hall and the Prudential Center.
The Essex Plaza One at 1060 Broad Street becomes a significant one $ 27 million The renovation is to begin at the end of the year. Seniors are getting brand new Energy Star appliances, upgraded finishes like quartz countertops, new window treatments, floors and more to make their homes look and feel brand new. Fairstead will also provide internet and cable access for all units, with the service included in the rent of the residents. Some of the units will be brought up to the UFAS accessibility standards so that residents with restricted mobility can get barrier-free apartments.
New lighting and signage will be installed throughout the site, as well as new security cameras, new windows, improved elevator equipment and repairs to sidewalks. The common room and kitchen will be completely renovated and a brand new fitness center will be created for the residents. A full-time resident services coordinator will be on-site to provide access to health, medical, and other social services, as well as curating events and programs for residents.
The remainder of the portfolio includes 241 single family homes in 12 buildings in the surrounding blocks that will be improved in the future and will also be funded through the New Jersey Housing Mortgage Finance Agency. The portfolio is supported by a rental assistance contract with HUD.
Fairstead is a purpose-driven vertically integrated real estate developer specializing in creating sustainable, high quality housing. As of 2014, Fairstead has more than. acquired or developed $ 4 billion owned. With offices in new York, Maryland, and South carolina, the team at Fairstead manages over 90 communities across the country and operates its comprehensive real estate platform, which includes acquisitions and development, venture capital investments in prop-tech, design and construction, energy and sustainability, property management, marketing and leasing. The company also manages one of the most proactive community impact programs in the industry to provide on-site support services to residents. Please visit www.fairstead.com for more information.
About LIHC Investment Group
Led by Charlie and Andrew Gendron, the LIHC Investment Group has developed into one of the most respected real estate investment groups in the industry. The company has stakes in more than 38,000 apartment buildings nationwide, the vast majority of which are affordable. Our expertise in heritage transactions means we know how to be creative and deliver results that benefit property owners, investors, tenants and the community. To learn more, visit: https://lihc.com/
Jovana Rizzo, Fairstead
CJ Mayer, BerlinRosen
Kelly Magee, LIHC investment group