Phase 1 Development of 297-Unit High Rise Apartments
Parkview Financial has closed a $90 million construction loan to Acier Holdings for the construction of Phase I of The Halo, a high-rise apartment project located at 289-301 Washington Street in Newark, NJ. Phase I will include 297-units in 38 stories over a five-level parking structure. At 43 stories, the project will be the tallest building in the city. With this loan in place, construction of Phase I will begin immediately, with completion anticipated for January 2024.
Situated on a .62-acre land parcel, the unit mix will include 156 studios, 84 one-bedroom units and 57 two-bedroom units. Common area amenities include a pool, sauna, fitness center with top-of-the-line equipment, multiple lounge rooms, a game room, conference rooms with private office suites, shared workspaces and a rooftop deck with great views of Newark, the Manhattan skyline, and beyond. The building will incorporate the latest technologies targeting 93% energy efficiency.
Acier Holdings acquired the site in 2017 and subsequently secured approval for a three-phased project to total approximately 949 units in three towers.
The project has been approved by the City of Newark with a Payment In Lieu of Taxes (PILOT) tax abatement program that reduces property taxes to 10% of the revenue for 30 years. Phase I includes 30 affordable units.
“Parkview Financial is pleased to work with Acier Holdings on what will be an iconic addition to Newark’s skyline,” said Paul Rahimian, President and CEO of Parkview Financial. “Newark continues to see billions of dollars in capital investment for new and redevelopment projects and we have identified this as an expanding rental market, convenient to Manhattan and other major job centers for its residents.”
The Halo is one mile east of Rutgers University Hospital and Medical Center and the Rutgers Newark Campus is located one mile north. Newark Penn Station is three-fourths of a mile northeast with service including New Jersey Transit, Amtrak and PATH trains for access to the region.
The City of Newark is the most populous city in the state of New Jersey and is one of the nation's major air, shipping, and rail hubs. Starting in the early 2000s, Newark led the state in the rebuilding and rehab of its housing stock and issuance of building permits. Citywide incentives to encourage construction development, an improving local economy, and increased demand for low-cost housing close to Manhattan has made Newark one of the fastest growing cities in the entire Northeast.
This is Parkview Financials’ second construction loan with Acier Holdings. The first loan was for $56 million in 2020 for the Phase I of Jersey Walk, a 274-unit Class A apartment community at 901 E Jersey Street in Elizabeth, NJ.