The city council for the City of Newark recently approved a 25-year tax abatement to fund the construction of a new five-story building at the site of the former City National Bank building in Weequahic in the south ward. On May 20, officials voted to approve a tax incentive for the East Orange-based firm 1080 Bergen Developer Urban Renewal LLC, which shares an address with the real estate firm Naimor.
The legislation states that the LLC intends to deliver a total of 66 apartments and 5,570 square feet of commercial space at 1072-1078 Bergen Street. The project includes 53 market-rate units – 3 studios, 36 one-bedrooms, and 14 two-bedroom units – and 13 affordable units. One studio and 2 one-bedroom apartments will be allotted to residents earning 40% of the area median income (AMI), while 2 one-bedrooms and 1 two-bedroom unit will be allotted to residents earning 60% AMI. The project also includes 5 one-bedroom and 2 two-bedroom apartments for residents earning at or below 80% AMI. It includes 29 on-site parking spaces, 1,080 square feet of amenity space, and a 723-square-foot gym.
Despite the city council voting to approve the financial agreement, the determination of the affordability rate remained a point of contention between Newark residents and the legislative body during the May 20 meeting. Residents who submitted public comments during the public hearing on the legislation voiced concerns that the project would not be affordable for city residents, where the median household income stood at $52,060 in 2024, according to the U.S. Census Bureau.
A disclosure from the federal Department of Housing and Urban Development says that the Newark, NJ HUD metro area, the metric used to determine affordability across the region, stood at $135,300 for a family of four as of June 2025.
Despite the dispute between residents and the council over approval, the project has the potential to revitalize a prominent corner in the south ward. The property sits along the commercial corridor on Bergen Street, as well as two blocks from Weequahic Park and three blocks from Newark Beth Israel Medical Center.
The site is also less than a mile from the Cosmo 440 multifamily tower at the corner of Elizabeth and Meeker avenues. That apartment building was previously known as Carmel Towers and was erected in the 1970s, but sat empty for over a decade after it was closed in 2011. Jersey Digs reported in April 2025 that the owner of the towers secured a $60 million loan to fund its restoration.
Records from the Essex County Register show that the site at 1072-1078 is two separate lots. 1080 Bergen Street Developer LLC, which later transferred ownership of the lots to the urban renewal entity, paid $1.7 million for the two properties in December 2024.
On the other hand, the approval from the Newark City Council comes just a few weeks after officials approved another long-term tax exemption for another LLC affiliated with Naimor. Jersey Digs reported in May that the LLC secured a 20-year tax incentive for the construction of a five-story building at 763 and 765-767 South Orange Avenue at the intersection of County Route 510. That project consists of 32 rentals and 1,143 square feet of commercial space.
