A proposal to repurpose the Firemen’s Insurance Co. building in downtown Newark into an affordable apartment and retail complex recently secured an official endorsement from the city council when officials voted to approve a tax incentive for the project.
Members of the city council voted to approve an ordinance granting a 35-year tax abatement to 10 Park Place Newark LLC, a limited liability firm affiliated with Newark-based real estate firm Berger Organization, during the council’s regular meeting on Jufne 17.
The ordinance states that the 10-story building will include 196 affordable residential units and 4,500 square feet of retail space. The project will include 54 studios, 116 one-bedroom, 16 two-bedroom, and 10 three-bedroom apartments. The ordinance calls for 195 units to be allotted to residents earning an average of 50.1% of the area median income (AMI), with units set aside for residents earning 60%, 50%, and 30% AMI.
Residents will have access to amenities including a mail room, an on-site laundry facility, a community lounge, gym, bike storage, and space for social services. These will be located at 2-4, 6, and 8-12 Park Place.
The legislation stipulates that the developer will pay an annual service charge ranging from 3.5% to 5% of the project’s adjusted gross revenue for the duration of the tax abatement.
The city council voted to adopt the ordinance less than eight months after an NJ.com report said the New Jersey Economic Development Authority granted $12 million in Historic Property Reinvestment Program tax credits, as well as an $81 million Aspire tax credit, toward the project.
A report in RE-NJ from September estimates the entire project will cost around $148 million and take over two years to complete. The developer will install new utility systems, reconstruct each floor to accommodate the new residential layout, install new elevators, and upgrade the basement and roof to support resident amenities.
Jersey Digs reported in August 2023 that the Newark Landmark and Historic Preservation Commission had approved a plan to convert the building. That plan called for the creation of 231 apartments, rather than the 196 units specified in the ordinance.
The ordinance marks a turning point for the Berger Organization, which has controlled the nearly 100-year-old building since 1990. An archive from the real estate firm says the building underwent renovations in 2006. However, a report in NJ.com says the building has been vacant for six years.
The Firemen’s Insurance building once stood next to the Military Park Hotel, which was demolished in 1993 to make way for the New Jersey Performing Arts Center. The building at 8 Park Place was the third headquarters of what was once the world’s largest fire insurance company.
The report in NJ.com also says that Miles Berger, the CEO of the eponymous real estate firm, said the building’s commercial space will be leased to local businesses at below-market rents.
Berger is also the owner of the Robert Treat Center at 50 Park Place, 33 Washington Street, the Military Park Building at 60 Park Place and 570 Broad Street, to name a few. A report in NJ.com says Berger is currently developing a $198 million, 21-story apartment building at 22 Fulton Street. That project is being built alongside New York-based developer SK Development and also secured $90 million in state and local tax incentives.
