UPDATED, Jan. 27, 4:30 p.m. — Newark’s tallest development is closer to realization this week after developer Acier Holdings scored a big construction loan from Parkview Financial.
The Commercial Observer reported that Acier landed $90 million in construction financing for Phase 1 in development of The Halo Newark, a three-building, 949-unit project. The loan will cover the construction of 297 units on 38 stories, as well as a five-story parking garage.
The 0.62-acre parcel for construction is located at 289-301 Washington Street. The building’s amenities will include a pool, sauna, fitness center, lounge rooms, game room, conference rooms and a rooftop deck. Among the planned units, 30 will be affordable in the first phase.
“In 2020 we decided that the time is ripe for Newark to have a project built on par with major international cities such as London, Tokyo and obviously New York City,” Lakewood, New Jersey-based Acier said in a statement. “The city of Newark, who helped us considerably and supported us in every step of the process, shares our vision for the city and for the future of it.”
Acier bought the site from 289 Washington LLC in 2017 for $10.8 million, according to the Observer. After receiving approval, the developer received a designation that could qualify the project for a payment in lieu of taxes abatement program, which would reduce property taxes to 10 percent of revenue for 30 years.
Construction is expected to begin on the first phase immediately and is scheduled to conclude in January 2024, Multi-Housing News reported.
Before the current project was underway, Acier looked to sell the downtown site, tapping Meridian Capital Group to market it as it as a multifamily investment in a city Opportunity Zone. The developer sought $40 million for the site, where the project was then slated to include 594 units in total.
Correction: An earlier version of this article said the financing was arranged by a Newmark team. Acier later confirmed that Newmark was not involved in the transaction.
[CO] — Holden Walter-Warner