Old Newark Hospital Buildings Set To Become 42-Unit Housing Complex After Getting $12 Million in Tax Credits

A $12 million tax credit from New Jersey's Economic Development Authority will transform two abandoned St. Michael's Hospital structures into homes. The buildings will become Newark Commons, with 42 units meant for medical staff and rising professionals.

Standing empty for two decades, the 104,000-square-foot structure at 292-306 Dr. Martin Luther King Jr. Blvd. dates back to 1869. Plans call for 146 bedrooms, plus 4,500 square feet of retail space stretching along Central Avenue. The worn brick walls will soon buzz with new life.

"Newark Commons demonstrates how the public and private sector can collaborate to create housing that is priced affordably and able to meet the needs and demands of today's workforce and young professionals," said Jeffrey Crum, President of Ellavoz Impact Capital, according to Business Wire.

City officials backed the plan in stages. First came zoning approval in early 2025. Then, last September, the Council granted a 30-year tax break. The plan sets aside one-fifth of units at lower costs for families with modest means.

Money flows from several sources. The Historic Property Reinvestment Program provided tax credits. Federal preservation funds pitched in too, after the National Park Service approved renovation plans. Local banks and Opportunity Zone investors round out the funding mix.

Based in Belmar and Newark, Ellavoz Impact Capital manages $300 million in assets. Their work centers on building places where working people can live and thrive. Their team brings together numbers experts, legal minds, and building pros from both profit and nonprofit worlds.

Workers will break ground at Newark Commons as 2026 begins. The project aims to ease the squeeze of rising rents that has gripped downtown since the pandemic struck.