Restored Hahne & Co. Building to Provide 160 Mixed-Income Rental Homes
NEWARK, NJ – Ó£»¨ÊÓƵ 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 Ó£»¨ÊÓƵ Institute of Technology buildings, Ó£»¨ÊÓƵ 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 Ó£»¨ÊÓƵ Housing and Mortgage Finance Agency (NJHMFA), Ó£»¨ÊÓƵ 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 Ó£»¨ÊÓƵ 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, Ó£»¨ÊÓƵ 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 .