Ellavoz Impact Capital (EIC), a social impact investor, adviser, asset manager, and real estate developer, said Sept. 30 that it has been awarded $12 million in Historic Property Reinvestment Program tax credits from the New Jersey Economic Development Authority (NJEDA) for the historic restoration and conversion of the original St. Michael’s hospital buildings in Newark.
The project, known as Newark Commons and located at 292-306 Dr. Martin Luther King Jr. Blvd., encompasses two interconnected buildings that served as the original St. Michael’s Hospital, built in 1869. The structure has been vacant for more than two decades.
EIC will convert the 104,000-square-foot building into new workforce housing apartments. The units are designed to meet the needs of mobile professionals, health care workers, and university students seeking quality, price-attainable housing in downtown Newark.
New Jersey’s largest city has experienced rapid rent growth since the COVD-19 pandemic. The restored building will consist of 42 units with 146 bedrooms and ample amenity space designed to foster community-building among residents.
The building will also contain a 4,500-square-foot commercial/retail space fronting on Central Avenue.
Construction on the project is anticipated to begin in early 2026.
The city’s zoning board of adjustment unanimously approved the development plan earlier this year. In September, EIC secured the City Council’s approval for a 30-year tax abatement, which will help enable the property to offer price attainable housing. Twenty percent of the housing will be restricted as affordable for low- and moderate-income individuals.
The NJEDA tax credits will be paired with federal Historic Preservation tax credits. The Newark Commons restoration plan and design has already received approval from the National Park Service. The property will also tap Opportunity Zone investment capital, a federal tax incentive program designed to stimulate investment in under-resourced communities. EIC is working with local banks and lending institutions to provide debt financing to complete capitalization of the project.
“Newark Commons demonstrates how the public and private sector can collaborate to create housing that is priced affordably and able to meet the needs and demands of today’s workforce and young professionals,” said EIC President Jeffrey Crum. “NJEDA’s investment also enables EIC to preserve an iconic and historic structure while adapting it to better serve Newark’s growing population and economy.”
EIC, based in Belmar and Newark, is a social impact investor, adviser, asset manager, and real estate developer focused on creating and preserving workforce and affordable housing and other community-oriented real estate properties.
