The New Jersey Economic Development Authority Board recently approved $10 million in grant funding under the Real Estate Gap Financing Program to support the development of five real estate projects.
The program provides gap financing for impactful real estate development projects located in select municipalities that address the negative economic impacts of the COVID-19 pandemic.
“New Jersey has prioritized fostering a sustainable economic recovery by ensuring that federal COVID-19 recovery resources have a lasting impact by helping communities revitalize underutilized spaces, expand affordable housing, and support small businesses,” said NJEDA Chief Executive Officer Tim Sullivan.
Approved by the NJEDA board in July 2024, the Real Estate Gap Financing Program provides grants covering up to 50% of total eligible project costs, with a minimum grant funding award of $500,000 and a maximum award of $5 million per project. Eligible real estate projects include commercial/office, supermarkets/grocery stores, manufacturing, non-profit/community use projects, cultural arts, performing arts, and mixed-use projects located in 25 distressed municipalities.
The following projects were approved to receive funding through the program:
- 500 High Street LLC – Perth Amboy – $2,791,515
- The project, at 500 High St., involves the rehabilitation and new construction of a vacant, deteriorated concrete shell structure into a six-story mixed-use development. The project will have 23 residential units, five of which will be designated as affordable housing, along with a 1,100-square-foot commercial space on the ground floor.
- Parkway Eye Care Center, LLC – East Orange – $2,748,485
- The proposed project, at 21 North Park St., involves new construction of a mixed-use development featuring 15 residential units, including three affordable units, along with a commercial component that will serve as a new home for Parkway Eye Care Center. The project is led by a certified small, minority, and woman-owned business and is intended to stabilize the practice’s long-term presence in the community.
- 500 Blvd Urban Renewal LLC – Lakewood – $2,000,000
- The project, at 500 Avenue of the Americas, will include the construction of a two-story commercial building totaling 15,698 square feet, featuring a restaurant on the first floor and conference space on the second floor.
- Greater Bergen Community Action Inc. – Garfield – $1,300,000
- The project, at 106 Somerset St., involves the substantial rehabilitation of a 24,000-square-foot, three-story office and retail building, transforming the property into a mixed-use facility anchored by a small business assistance center supporting women-, minority-, and veteran-owned enterprises—especially in the renewable energy and construction sectors. The site will include a branch of the group’s 1st Bergen Federal Credit Union, a commuter-focused concession, and access to community services.
- The Institute of Music for Children – Elizabeth – $1,160,000
- The project, located at 780 Salem Ave., involves substantial interior improvements to transform an underutilized space into a vibrant, high-quality facility for arts education, job creation, and community revitalization. The renovations aim to expand programming for youth, increase employment for teaching artists, and strengthen social and emotional health in response to COVID-19’s long-term impact on children and artists.
