$190M Mixed-Use Residential Project to Be Tallest Building in Newark, N.J.
- May 07, 2010
May 7, 2010
By Barbra Murray, Contributing Editor
In an effort to further the revitalization of downtown Newark, N.J., a partnership involving Dranoff Properties, the New Jersey Performing Arts Center (NJPAC) and the city of Newark have revealed plans for the development of One Theater Square, a $190 million mixed-use residential project. The 44-story structure will hold the distinction of being the tallest building in Newark.
One Theater Square will play a major role in expanding NJPAC’s Theater Square, a downtown cultural hub centering on the 250,000-square-foot performing arts center. “Part of our mission is to develop the area around NJPAC to extend the economic impact of the center and downtown,” Tom Lussenhop, Project Executive, Real Estate Development at NJPAC, told CPE. “As an anchor, the arts center is providing an attractive and vibrant environment for residential development.”
The new mixed-use tower will occupy a 1.2-acre site adjacent to NJPAC and will feature 300 residential units, a parking garage and 20,000 square feet of retail space for restaurants, shops and galleries.
Development of One Theater Square dovetails with Newark’s longtime goal of creating a live-work play atmosphere designed to attract working-class singles, couples and families to the downtown area. “NJPAC brings hundreds of thousands of people to downtown every year,” Lussenhop said. “It spans many acres so the amenity infrastructure is already in place. Cities upon cities around the U.S. are developing their downtown areas into live-work-play destinations; it’s a national trend and Newark is joining in.”
Dranoff, which has a land lease agreement with Newark to build One Theater Square on the designated 1.2-acre site, will own and operate the mixed-use property and is currently attempting to secure private sector capital for the endeavor. City and state agencies are also doing their part to assist with financing. Among those offering a helping hand is the New Jersey Economic Development Authority, which will act through its Urban Transit Hub Tax Credit Program to provide $38 million over a 10-year period for the project.
“It’s a complex financing process and the next several months will be spent on finalizing its architecture,” Lussenhop said.
Once all private and public financing is in place, Dranoff will move forward with One Theater Square in hopes of commencing construction in 2011 and wrapping up the project about 25 months later.