NEWARK, NJ–L+M Development Partners and financial heavyweights Prudential Financial, Goldman Sachs and Citigroup joined Newark Mayor Ras Baraka for the groundbreaking on a $174 million renovation of the historic Hahne & Company building in downtown Newark.

The public-private partnership will transform the landmark Hahne's building into an innovative multi-use development that will create mixed-income housing, new street-level retail space and a new arts and cultural center for Rutgers University.

The project, which has had substantial support from local co-developers Hanini Group and Crawford Street Partners, will create hundreds of permanent new jobs and restore the former Hahne's Department Store as a vibrant destination in downtown Newark.

“The Hahne's Department Store is one of the legendary buildings of our historic downtown and today's groundbreaking is another step in the transformation of Newark's core,” says Mayor Baraka. “For nearly three decades, this structure has stood vacant, but now it is becoming an integral and dynamic part of our efforts to transform Newark's downtown into a 24/7 neighborhood. From the renovation of Military Park to the relocation of the Panasonic USA headquarters; from the first luxury housing skyscraper being presented in 50 years here by NBA legend and Newark native Shaquille O'Neal to the openings of the New Jersey Performing Arts Center and the Prudential Center; Newark is undergoing an urban renaissance. More importantly, all of these development projects, including the construction work, will provide jobs and career opportunities for Newark residents. This is an example of how public and private partnerships can collaborate for the good of our City.”

“This is a historic day for the City of Newark,” says Jon Cortell, vice president of development at L+M Development Partners. “Together with our myriad of partners, we are proud to finally bring the iconic Hahne's building back to life as well as inject new jobs, housing, retail and learning opportunities into the heart of downtown Newark.”

The Hahne's restoration is taking place across the street from the newly renovated Military Park and adjacent to Prudential's new 20-story office building.  The restored building will serve as a hub for artistic and technological innovation in Newark and link diverse communities located in the downtown area.

Reflecting the historic significance of the 400,000-square-foot building, the project will preserve key elements of the four-story former department store, including the façade, the original signage and the building's expansive skylight.

The Hahne & Company Department Store was designed by architect Goldwin Starrett and built by prominent local businessman Julius Hahne in 1901. Hahne's was Newark's first commercial building designed specifically as a department store. In 1987, Hahne's was sold to May Department Stores Co., owner of Lord & Taylor, and the building has remained vacant since then.

When complete, the first floor of the renovation will feature some 75,000 square feet of new street level retail space along Broad Street, including an approximately 30,000-square-foot flagship Whole Foods Market offering healthy and sustainable food options. The third and four floors will have a portion of the 160 mixed-income residential units, with 64 of the 160 units reserved for low-income tenants.

The development will also include the new home for the Rutgers University Department of Arts, Culture and Media of approximately 50,000 square feet. The space will include a 250-seat auditorium-style classroom plus studio and gallery space for campus arts programs. The Rutgers space will also provide a new teaching and work environment for more than 60 Rutgers staff and faculty. A nine-story residential building with approximately 100,000 square feet of residential space will connect to Hahne's through a shared lobby and public atrium.

The renovation was financed through a partnership among public, non-profit and private groups. The sources of funding include $66 million from the New Jersey Housing and Mortgage Finance Agency, $40 million from the New Jersey Economic Development Authority, $67 million of private equity and tax credit equity from Goldman Sachs as well as financing from Prudential Financial, Citi and sponsor equity.

“Prudential's support of the renovation of the iconic Hahne's building is the latest example of our deep and lasting commitment to Newark and our neighbors,” says Lata Reddy, vice president of corporate social responsibility and president of The Prudential Foundation at Prudential Financial. “We are proud to be part of this catalytic effort to create a vibrant downtown in the city that has been our home for 140 years.”

“We are proud to be part of this unique public-private partnership that makes this project possible,” says Margaret Anadu, managing director in the Goldman Sachs Urban Investment Group who oversees some of the firm's largest impact investing projects in communities around the country. “This restoration is an important part of our nearly $500 million of investments in Newark that catalyze economic development and create jobs for local residents. We are excited to see the impact that providing affordable housing, access to healthy food options and building a '24-7' community will bring to this neighborhood.”