Listen to this articleThe basics:
- Walker & Dunlop arrange $250M financing for mixed-income 22 Fulton project in Newark
- 396-unit development will include 315 market-rate apartments, 80 affordable units
- Financing package includes construction debt, preferred equity, permanent loan commitment
- Project leverages $90M in NJ Aspire tax credits, 30-year PILOT with the City of Newark
A mixed-income multifamily project set to rise within a Qualified Opportunity Zone in Newark has secured financing toward that end.
Walker & Dunlop Inc. announced this month arranging a comprehensive package totaling more than $250 million to facilitate the development at 22 Fulton St. W&D Capital Markets Institutional Advisory arranged the funding on behalf of SK Development and the Berger Organization.
The downtown Newark development will feature 396 residences, including 315 market-rate apartments, 80 affordable units and one staff home. The mix of one- and two-bedroom apartments will reserve 20% of units for households earning 60% of Newark’s AMI. The new financing package includes:
- Nearly $119 million provided by the Urban Investment Group at Goldman Sachs, comprising a construction loan, 4% Low-Income Housing Tax Credit equity and LIHTC bridge loan
- $20 million in preferred equity provided by an unnamed institutional lender
- $100 million forward commitment for a permanent loan also provided by an unnamed institutional lender
W&D Senior Managing Directors Aaron Appel, Keith Kurland, Jonathan Schwartz and Adam Schwartz; Managing Director Jordan Casella; Senior Director Michael Ianno and Director Jackson Irwin led the effort.
The 21-story project also leverages several government incentive programs. Among them, it received $90 million in NJ Aspire tax credits. According to Walker & Dunlop, Mass Mutual purchased the incentives using interim financing provided by Bear Creek Capital. A 30-year PILOT agreement with the City of Newark, adopted earlier this year, also supports the development. As reported by Real Estate NJ at the time, the project will replace a parking lot.
Model behavior
Located in the Military Park neighborhood, the project will offer views of Manhattan along the Passaic River. The area provides access to downtown shopping and entertainment, along with transportation options. Newark Penn and Broad Street stations are walkable from the property. Meanwhile, Newark Liberty International Airport is within 5 miles.
It will also include more than 4,700 square feet of ground-level commercial space.
Track record
Commercial real estate finance and advisory services firm Walker & Dunlop says it originated more than $30 billion in debt financing volume in 2024. Of that total, over $25 million represented multifamily properties.
“This project delivers high-quality, mixed-income housing that addresses the city’s need for accessible homes,” Appel said. “By integrating best-in-class ESG practices and sustainable design, 22 Fulton will be environmentally responsible, socially inclusive, and economically viable, a model for community-focused development in Newark and beyond.”
W&D said development of 22 Fulton will follow National Green Building Standards at 115% above code.
“This property will help reshape Newark’s historic downtown, and we’re proud to contribute to the significance of bringing much-needed affordable housing to the community,” said Miles Berger, chairman and COO at Newark-based Berger Organization.
Dan Alger head the Urban Investment Group at Goldman Sachs Alternatives. Describing the project as a “landmark development,” he said it also serves as a roadmap to “leverage innovative financial solutions to expand access to quality housing and help revitalize communities.
Construction on 22 Fulton is expected to commence in the coming months, according to W&D. Delivery is projected by the end of 2028.