A major redevelopment project designed to combat rising rents and preserve a piece of Newark’s history is moving forward, with Ellavoz Impact Capital (EIC) securing a crucial $12 million in tax credits from the New Jersey Economic Development Authority (NJEDA).
The funding will support Newark Commons, an estimated $80 million project to restore and convert the original St. Michael’s Hospital buildings, which have stood vacant for over two decades. Located at 292-306 Dr. Martin Luther King, Jr. Blvd., the structure, originally built in 1869, holds over 150 years of Newark history.
Bringing attainable housing to downtown
EIC plans to transform the vacant 104,000-square-foot facility into 42 units containing 146 bedrooms of new workforce housing. These units are specifically designed to meet the growing need for price-attainable housing among mobile professionals, essential healthcare workers, and university students in downtown Newark, an area that has experienced rapid rent growth since the COVID-19 pandemic.
The project is structured to ensure affordability and community benefit:
- Affordability Commitment: Twenty percent of the housing units will be restricted as affordable for low- and moderate-income individuals.
- Retail Space: The building will include 4,500 square feet of commercial/retail space on Central Avenue, aimed at creating street-level activity and providing needed service outlets in an underserved section of downtown.
The development has already received significant support from local government, including unanimous approval from the Newark Zoning Board of Adjustment and a 30-year tax abatement from the City Council in September, which helps ensure the housing remains price-attainable.
A Model for historic preservation
The NJEDA tax credits, awarded through the Historic Property Reinvestment Program, will be combined with federal Historic Preservation tax credits. The restoration plan has already received approval from the National Park Service.
Jeffrey Crum, President of EIC, highlighted the partnership between preservation and community development. “Newark Commons demonstrates how the public and private sector can collaborate to create housing that is priced affordably and able to meet the needs and demands of today’s workforce and young professionals,” he said. “NJEDA’s investment also enables EIC to preserve an iconic and historic structure while adapting it to better serve Newark’s growing population and economy.”
The project is also utilizing Opportunity Zone investment capital and local bank financing to complete its capitalization. Construction on the monumental restoration effort is anticipated to begin in early 2026.
