From left: Jeffrey Goldberg, chief executive officer, Fairstead and Brett Meringoff, managing partner of development, Fairstead in front of Essex Plaza One at 1060 Broad Street in Newark, NJ (Fairstead, ApartmentFinder)
Last week, the New York-based development firm Fairstead committed $500 million to grow out its multifamily holdings as part of a larger expansion plan.
Monday, it put its money where its mouth is, buying a 13-property, 691-unit affordable housing portfolio in Newark.
In a joint venture with LIHC Investment Group, the firms spent $85 million on Essex Plaza One, a 450-unit senior housing residence at 1060 Broad Street, sources familiar with the deal said.
The remaining 12 buildings contain 241 units and are spread across surrounding blocks.
Fairstead and LIHC plan to spend $27 million to renovate Essex Plaza One. Goldman Sachs Asset Management’s Urban Investment Group and Berkadia will provide financing.
The state of New Jersey, city agencies and the U.S. Department of Housing and Urban Development are partners in the revitalization, which comes after the city of Newark committed to create and preserve at least 6,000 affordable housing units for low-income residents over the next five years, New Jersey Stage reported.
Fairstead has other senior housing projects in the works. The firm is converting the Park 79 hotel on the Upper West Side, purchased for $23 million in 2016, into affordable units for seniors. And last year, the developer picked up a senior affordable housing property in Davie, Florida, with plans to sink $12 million into renovations.