In this sluggish real estate market, how is it possible that two major mixed-use projects are under construction? With redevelopment all but halted elsewhere, New Brunswick keeps pushing forward with new opportunities for change for the better. With the assistance of state and federal tax programs through the Urban Transit Tax Credit Program and New Market Tax Credit, projects are becoming a reality.
These projects include the Gateway Transit Village and New Brunswick Wellness Plaza which are located within one city block of the New Brunswick Train station.
Gateway Transit Village
In early 2009, Gateway was the first project to be designated as eligible for the new Urban Transit Hub Tax Credit Program. Under the program, credits are issued against income taxes that would be owed by businesses locating within newly built offices within a mile of a transit center; the credits can then be used to attract tenants, or else be sold as commodities. Fast forward to April 8, 2011 —when Gateway held its topping off ceremony.
The Gateway Transit Village, as its name spells out, will serve as a gateway between downtown New Brunswick and Rutgers University. College Avenue, the central spine of the campus will be directly connected to the train station’s westbound platform via an expansive skywalk. The 624,000-square-foot building has a 657-space public parking structure at the core of its first 10 stories; that core is to be wrapped in retail, restaurant and office space. Above the parking structure are 14 floors consisting of 150 market-rate apartments with the top floors having 42 condominiums. Components of the retail and office space include a new 45,000-square-foot Rutgers University Barnes & Noble Bookstore, 45,500 square feet of office space, and 13,000 square feet of ground-floor retail and restaurant space. Additionally, both Rutgers University Press and Brother Jimmy’s BBQ, a New York City-based restaurant chain, have signed leases at Gateway. This project is a public- private partnership including the City of New Brunswick, Rutgers University, and New Brunswick Parking Authority. Devco (New Brunswick Development Corporation) and Penn-rose Properties are co-developers of the project.
New Brunswick Wellness Plaza
In July 2011, a ground-breaking ceremony was held for New Brunswick Wellness Plaza, a $114 million, 625,000-square-foot project to be located in a federally designated “food desert.” This means that the U.S. Department of Agriculture has identified the area as an industrialized area lacking options for healthy, affordable food. The New Brunswick Wellness Plaza will include the area’s only full-service supermarket, a community fitness center and a 1,275-space public parking facility.
The New Brunswick Wellness Plaza, will consist of a 49,000-square-foot supermarket to be operated by Philadelphia-based Fresh Grocer, an additional 62,000 square feet is committed to Robert Wood Johnson University Hospital Wellness Center and a 1,275-space parking garage. The Wellness Plaza is located along Albany Street between Paterson and Jelin Streets and is scheduled to open in late 2012. WNC & Associates Inc., a national investor in urban renewal and affordable housing projects, has provided $10 million in New Market Tax Credit financing to developer Ferren Urban Renewal, LLC.
— Perry GraBois, retail broker with Metro Commercial Real Estate