Press release from Business Wire
City of Newark Approves Initial Restoration Plan for Landmark Hahne & Company Building at 609 Broad Street
<p class='bwalignc'> <i>Redevelopment of the iconic building will continue the revival of downtown Newark</i> </p>
Tuesday, July 23, 2013
City of Newark Approves Initial Restoration Plan for Landmark Hahne & Company Building at 609 Broad Street13:36 EDT Tuesday, July 23, 2013
NEW YORK (Business Wire) -- The City of Newark Central Planning Board (CPB) today approved a plan by L+M Development Partners (L+M), the Hanini Group (Hanini), and the Goldman Sachs Urban Investment Group (GS) to restore the landmark 400,000 square-foot Hahne & Company (Hahne's) building at 609 Broad Street in Newark, New Jersey. This decision signals a continued commitment by the City to bring important new housing and retail opportunities to downtown Newark. The Prudential Insurance Company of America provided a $7.5 million loan through its Social Investments program to help the development team acquire the building.
“The Hahne's building is an icon of the city's past, not only for those who admired its magical window displays decades ago, but also for current residents who now live and work around it,” said Samer Hanini of the Hanini Group. “This will be one of the largest rehabilitation efforts in Newark's historic downtown in recent years, and will be a critical piece in the city's revitalization.”
In honor of the building's historic significance, the current proposal will preserve key elements of the four-story building, including its facade and original signage. The first floor will feature retail space designed to re-engage the building with Broad Street's vitality and augment the growth of small businesses on the Halsey Street corridor. Upper floors will feature residential units with the addition of a fifth floor for penthouse apartments. The plan also involves constructing a new six-story mixed-use building at the vacant lot on the corner of Halsey and New Streets, which will be connected to Hahne's via a shared lobby and atrium.
Once completed, redevelopment of the site will provide more than 180 residential units, 80,000 square feet of space for commercial, community, and office use on upper floors, nearly 80,000 square feet of ground-level retail space, and an underground parking garage with more than 200 spaces. As a geographic cornerstone of downtown Newark, a restored Hahne's will also connect University Heights, home of five major educational centers—Rutgers University, New Jersey Institute of Technology, Seton Hall Law School, Berkeley College, and Essex County College—with the New Jersey Performing Arts Center (NJPAC).
“The Hahne's building is the lynchpin connecting the various corridors that make up downtown Newark,” said Ron Moelis, Chairman and CEO of L+M. “Restoring the building will not only add to the City's energy, but also serve as a catalyst for attracting new investment, residents, and economic activity that will ensure the success of Newark's revival.”
“We are proud to partner with L+M, Hanini, and Prudential on this iconic project,” said Alicia Glen, managing director and head of the Goldman Sachs Urban Investment Group. “By transforming a building that has sat vacant for decades, we will return a landmark to productive use and catalyze the revitalization of critical corridors in Downtown Newark.”
The current proposal complements larger efforts to renew Newark's downtown core, with the redevelopment of nearby Military Park and Prudential's new office tower, which is being constructed on an adjacent block. Nestled between two major transportation hubs and with public storefronts on three sides, a rehabilitated Hahne's will be restored as an important commercial center. In addition, its residential entrance on Halsey Street—sometimes referred to as Halsey Village—a one-way street now home to a vibrant mix of new restaurants and cafes, and will fill what's been a major void in the neighborhood.
“We‘re proud to partner with a team that shares our commitment to Newark's future and to play a role in returning this iconic building to commerce,” said Lata Reddy, vice president, Corporate Social Responsibility, at Prudential. “Redeveloping the Hahne's building is part of Prudential's broader strategy to invest in projects that integrate downtown's numerous assets into a thriving and cohesive destination. We are delighted to help bring to life a project that will have a tremendous impact on the area's vitality."
“The Hahne's Building is one of Newark's great historic structures, and a centerpiece of the downtown and Military Park area. We are excited that the development will preserve the building's beautiful architectural features while adding market-rate apartments, office space, and shopping options. The new Hahne's building will serve as another reminder that our city not only cherishes its history, but grows stronger and more vibrant every day,” said Mayor Cory A. Booker.
Designed by architect Goldwin Starrett and completed in 1901, Hahne's was Newark's first commercial building designed specifically as a department store. Originally servicing the carriage trade and later setting trends in retailing that were followed by other merchandisers, Hahne's was sold to May Department Stores Company, owner of Lord & Taylor, in 1987 and has remained vacant since 1987.
In the proposed restoration, Beyer Blender Belle Architects and Planners LLP, along with East Rutherford- and Newark-based Inglese Architecture and Engineering, will collaborate to provide architectural and engineering services. Ulana Zakalak, principal at Zakalak Associates LLC, will continue working with the redevelopment team as a preservation consultant. Also involved in the project are developers Crawford Street Partners and Regan Development Corporation.
Partners in the Hahne's redevelopment will continue to work with the City of Newark on next steps of the proposed rehabilitation. These local approvals will better position the redevelopment to secure competitive, public financing that may be available.
About L+M Development Partners
Since 1984, L+M Development Partners has been an innovator in developing quality affordable, mixed-income and market rate housing, while improving the neighborhoods in which it works. A full-service firm, L+M works from conception to completion, handling development, investment, construction and management with creativity that leads the industry. L+M is responsible for more than $2.5 billion in development, investment and construction and has created more than 15,000 high-quality units in the tri-state area alone. With Hahne's, L+M continues its investments in Essex County, New Jersey: 50 & 55 South Essex, currently under construction in the city of Orange's transit village, are projected to be completed in early 2014 (for more information, see www.50-55southessex.com). The firm is also expanding its geographic footprint to the Gulf region and West coast. Community leaders, government officials and investment organizations turn to L+M because of its consistent track record of excellence.
L+M is a double bottom line company, where its success is measured not only in financial returns but also by the positive impact it makes. L+M takes pride in its long-standing dedication to the communities it serves, demonstrated through an annual scholarship fund, job training programs and substantial support for local nonprofits. L+M brings a superior level of commitment to its investments in developments, and equally important, to its investment in people. Additional information can be found at www.lmdevpartners.com.
About the Hanini Group
The Hanini Group has become a notable presence in Newark's development scene. Since 2004 the Hanini Group has completed over $50 million worth of restorations and rehabilitation, bringing New York loft style units to the forefront of Newark's residential market and retail that has already altered the outlook for Newark's future. The firm is a unique blend of vision and practicality that brings a fresh perspective to Newark's emerging development, while staying ahead of the curve in the latest green building practices. Committed to Newark's future, the firm maintains a dedication to producing high‐end, cost effective buildings in Newark, while preserving historical integrity, defines the vision of the firm.
About the Urban Investment Group at Goldman Sachs
Established in 2001, the Urban Investment Group deploys the firm's capital by making investments and loans that benefit urban communities. Through its comprehensive community development platform, UIG is a catalyst in the revitalization of underserved neighborhoods. UIG has committed more than $2.8 billion, facilitating the creation and preservation of approximately 13,200 housing units - the majority of which are affordable to low, moderate and middle-income families - as well as nearly 1,300,000 square feet of community facility and more than 1,900,000 square feet of commercial and retail space.
UIG is part of The Goldman Sachs Group, Inc. (NYSE: GS). To learn more about UIG, visit www.gs.com/uig.
About Crawford Street Partners, LLC
Crawford Street Partners, LLC (CSP) is a real estate investment and services company. Since its establishment in 2002, CSP's mission has been to create unique, high quality commercial and residential spaces from abandoned and/or underutilized properties. By taking a holistic and responsible approach to development, CSP concentrates on targeted neighborhoods located in Newark and surrounding towns. Throughout its brief history CSP's projects have been recognized for their innovation, beauty, functionality and commitment to improving neighborhood streetscapes. CSP takes great pride in creating new jobs, attracting new businesses and filling the need for affordable, quality commercial and residential space while changing, for the better, one neighborhood at a time.
The Prudential Insurance Company of America is a subsidiary of Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $1.06 trillion of assets under management as of March 31, 2013. It has operations in the United States, Asia, Europe, and Latin America. Prudential's diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential's iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.
About Regan Development Corporation
Regan Development Corporation is family run business for 17 years, has developed over $172 million worth of residential and commercial real estate, improving the lives of thousands in the process. From residential opportunities for young working families and senior citizens to commercial shopping opportunities in urban and suburban settings, Regan Development has always worked for community improvement. Long Term Investment in Community In addition to development, the firm maintains long term ownership in the large majority of its projects, helping to maintain the high standard set at construction. Their efforts in revitalization have won accolades and awards from towns and cities throughout the tri‐state area. Regan Development's work is about more than creation or restoration of buildings, it is about restoring and improving communities.
Elizabeth Gemdjian, 212-784-5722