Apartments, City Council, Downtown, Rahway

Senior housing planned for Esterbrook site

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A 60-unit affordable senior housing development is envisioned for Esterbrook Avenue.

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City Council approved a resolution (90-22) during its regular meeting on Monday designating Collingswood-based Ingerman Group as redeveloper of five Esterbrook Avenue properties.

Photo By Derron Palmer

Over the past year, the five properties along Esterbrook Avenue have been studied and declared in need of redevelopment. The properties consist of Lots 7, 20, 21, 22, 23 within Block 151 and would have an address of 1430 Esterbrook Ave. The development would be across the street from another senior housing site, the 4-story, 51-unit Jack and Margaret Myers Senior Residence, which first was proposed to City Council in late 2007 and broke ground a decade ago.

The project will be financed through the use of some or all of the following sources, and/or other sources of funds to be identified in the future:

  • Low Income Housing Tax Credits (expected to be 4% tax credits)
  • Tax credits through the Aspire program;
  • Tax-exempt bond proceeds;
  • HOME Funds from Union County;
  • American Rescue Plan (ARP) funds from Union County;
  • First mortgage financing.

Ingerman Development Company, LLC (IDC) has successfully developed more than 8,000 affordable units and secured in excess of $1 billion in financing for such projects over the past 30 years, according to the resolution. The city is authorized, “as a means to facilitate the effectuation of the project,” to acquire the property and transfer or ground lease it to IDC, as may be later mutually determined by and between the city and IDC.

The city is authorized to negotiate a redevelopment agreement and Payment In Lieu Of Taxes (PILOT) agreement.

Ingerman also was behind The Willows, a 58-unit affordable housing facility on Central Avenue aimed at people employed in the arts industry, which opened in 2018. The facility was expected to contribute about $32,000 via PILOT in the 2021 municipal budget.

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