M & M breaks ground on $10M Newark mixed-use development

TRD New York /
Oct.October 27, 2009 05:53 PM
From left: Newark Mayor Cory Booker at Harmony Square’s groundbreaking, a rendering of phase I of the development at the corner of Third and Broad streets, and M & M Development founders Maria Yglesias and Maria Del Mar Lopez at groundbreaking

M & M Development and Newark Mayor Cory Booker led a groundbreaking ceremony today for Harmony Square, a $10.2 million development in the city’s North Ward that combines market-rate condominiums with affordable housing.

The first condo phase and the rental phase are starting at the same time with a 2010 completion date.

The condo, called [email protected] Square, will include two main developments, including 24 new condominium homes. The rental building, [email protected] Square, includes the rehabilitation of a 16-unit rental building with 10 units set aside for supportive housing, for domestic violence survivors and homeless residents looking for a stable residence.

Construction of the rest of the condos — three new buildings with 21 condominium units and one duplex — will kick off next year and finish a year later.

Developer Maria Yglesias, co-founder of M & M, said the project was converted into a mixed-use development from its original plan as a rental building, due to problems in the financing market.

“We had to reinvent the project,” she said at the groundbreaking ceremony. “That is a very difficult thing to do.”

The project, located at 103 Broad Street, was financed with a combination of public funds and private lender financing.

Additional financing comes from several state and local agencies, including $1.7 million from the New Jersey Department of Community Affairs.

Units for low- to moderate-income residents will cost between $75,000 and $175,000 and market-rate units will start at $151,000.

Homebuyers will be eligible for 15-year tax abatements and buyers of the project’s two duplex units will be eligible for five-year abatements.

The city of Newark has provided $250,000 for the rental component and the developer says it is exploring additional funding sources.

Yglesias says the company is hoping to line up funding for the final condo piece by the summer of 2010.

M & M has completed a number of developments in Newark, including Cathedral Homes in the city’s Central Ward and Villa Esperanza, an affordable rental program in the city’s South Ward.

Related Articles

In and around Newark’s Ironbound, projects proliferate

In and around Newark’s Ironbound, projects proliferate

From left: The Blau and Berg Company's Karine Blanc, TD and Partners' Nana Duncan and Lemor Development Group's Kenneth Morrison (Credit: Blauberg, TD+Partners and Lemor)

Black developers say partnerships aren’t always equal

Concept plans for 'The Halo' at 289-301 Washington Street and Meridian Capital Investment's David Schechtman - provided by Meridian Capital Investments/ Minno Wasko

Developer seeks $40M for Opportunity Zone site in downtown Newark

Clockwise from the upper left: Advance, Greek break ground at logistics center in Linden, home designed by Frank Lloyd Wright in Glen Ridge back on the market, Prism Capital pens Woodbridge site acquisition, Lone Star Funds offloads Montvale office

American Dream in East Rutherford finds a sponsor, Frank Lloyd Wright-designed home lists in Glen Ridge & more North Jersey real estate news

Joy Construction's Eli Weiss (top) and Maddd Equities' Jorge Madruga with 765 Broad Street in Newark (Credit: Google Maps and Getty Images)

Joy Construction, Maddd Equities land $34M loan for Newark building

From Left to Right: Whole Foods pens leases at Harborside, Englewood luxury rental complex hits the market, Prism retains architect at ON3, JMF breaks ground at Glen Ridge

Mack-Cali brings Whole Foods regional HQ to Jersey City, $85M Englewood apartment complex for sale & more North Jersey real estate news

From left to right: Advance, Greek Development secure financing for Avenel cold storage facility, West Orange acquires Rock Spring Golf Club, Jersey City advances hotel proposal near Liberty State Park, Multi-use North Hoboken redevelopment moves forward.

New Jersey Cheat Sheet: Englewood mansion takes 75% price cut, Rock Spring Golf Club in West Orange sold for $11.1M… & more

New Jersey Cheat Sheet: Toys ‘R’ Us unloads former Wayne HQ, Gov. Murphy touts Opportunity Zone awards… & more

New Jersey Cheat Sheet: Toys ‘R’ Us unloads former Wayne HQ, Gov. Murphy touts Opportunity Zone awards… & more