August 8, 2012 - New Jersey Redevelopment Authority Approves $2.5 Million In Financing for Redevelopment Project In Newark
NEW JERSEY REDEVELOPMENT AUTHORITY APPROVES $2.5 MILLION IN FINANCING
TRENTON, N.J. - The New Jersey Redevelopment Authority (NJRA) today announced the approval of a $2.5 million loan through the New Jersey Redevelopment Investment Fund (RIF) to Boraie Development, LLC to assist with the predevelopment and construction costs for the One Rector Street Project (ORS) in Newark, NJ.
ORS, a 25-story building which will stand over 200 feet, will provide 169 units of market-rate housing, including a mix of studio, one- and two-bedroom spacious apartments. The building will also be coupled with roughly 7,650 feet of retail space. The ORS project will be built adjacent to the New Jersey Performing Arts Center and in front of Newark’s New Jersey Transit Light Rail Station.
“This project is very important as it brings market-rate housing to Newark,” said Department of Community Affairs Commissioner Richard E. Constable, III. “I anticipate that this development will help stimulate Newark’s economy by bringing new residents to the city.”
The total development cost for the One Rector Street Project is estimated at $63.9 million, for which JP Morgan Chase has provided a preliminary construction with permanent financing commitment. The project was also approved for up to $20.6 million in tax credits over the next ten years through the Urban Hub Tax Credit Program. Revenue Area Bond proceeds are valued at $4.875 million.
“It is our goal at the NJRA to invest in projects that have a positive impact on the community,” said Leslie A. Anderson, NJRA Executive Director. “Not only will this project bring quality housing to the city, but it will also have a positive impact on Newark’s downtown area by bringing in resident-friendly retail.”
The NJRA manages the RIF program, which is a flexible investment fund that provides debt and equity financing for business and real estate ventures. Through the RIF program, the NJRA is able to offer direct loans, real estate equity, loan guarantees and other forms of credit enhancements.
For more information about the NJRIF program please log on to http://www.njra.us/njra/lib/njra/splash.html.