Construction Progressing at Prism's Parkway Lofts Project

Transformation of Garden State Parkway Landmark Beginning to Turn Heads. End Quote

Newark, NJ (1888PressRelease) July 17, 2012 - The transformation of a Garden State Parkway landmark is beginning to turn heads as construction progresses on Prism Capital Partners' Parkway Lofts in Bloomfield and East Orange. The $90 million redevelopment project involves a benchmark industrial-to-residential adaptive reuse of the 115-year-old former General Electric Company property that signals Exit 148 for millions of New Jersey travelers each year.

Six months after breaking ground, commercial real estate owner/operator Prism Capital Partners continues on track for the Parkway Lofts to welcome its first renters in Spring 2013. Visible changes already include façade work and preparation to install the 13-foot windows that distinguish the new design. Inside, Prism is in the midst of creating an intermediate second floor and a penthouse level that will convert the building's six stories into eight.

NEW VISION FOR AN OLD BUILDING

Prism acquired the 14.5-acre Parkway Lofts site in 2005, capitalizing on a great opportunity to take an obsolete industrial property and with it create high-density, transit-oriented housing for underserved middle-market renters. Phase I, currently underway, involves the conversion of a 365,000-square-foot warehouse building into 365 apartments, including 331 studio, one- and two-bedroom residences, and 34 penthouse units with terraces.

Prism recognized the importance of identifying the strengths of the existing structure to ensure preservation of its original character. "The design, by Minno & Wasko Architects and Planners, utilizes the property's 17-foot floor-to-floor ceiling heights," noted Eugene Diaz, a principal partner with Prism. "'Industrial' elements - such as exposed columns and beams, polished concrete floors, and post-modern finishes - will compliment the new, historical replica windows and other original architectural features."

Tenant amenities at the gated Parkway Lofts community will comprise a two-level fitness center and 20-seat screening theater. The developer is also building a roof-top deck, a billiard/party room and a dog-run across from the property. The building will be Wi-Fi pre-wired. In addition to unit private laundry facilities, residents will have access to larger commercial-style laundry rooms and individual storage lockers on each floor. A 2.5-story parking garage and additional under-building and surface parking ensure ample vehicle accommodations.

Prism will begin construction for Phase II - which will include 170 for-sale townhomes, a clubhouse and additional lifestyle amenities - by year-end 2012.

SMART GROWTH AT ITS FINEST

Upon completion, the Parkway Lofts will be a distinctive, high-density residential village. Designed to LEED-certification standards, the project reflects the potential of infill redevelopment in New Jersey and illustrates how projects like this can serve to preserve the state's history while setting the stage for its future, according to Diaz.

"This is Smart Growth at its finest," he said. "Ultimately, Parkway Lofts illustrates the value of adaptive reuse in the Garden State, which houses a sizable inventory of older industrial space. It further complements the state's Master Plan as a transit-related development."

This achievement did not come without challenges. Preparation for the Parkway Lofts project involved environmental remediation of a former brownfield site. Additionally, repurposing an outmoded structure, in and of itself, carries challenges.

"Taking what essentially began as a 'drafty old building,' and ultimately having it meet today's demands for sustainability and energy efficiency was no easy task," he said. "Add to that a mission to create a design that preserves history while yielding attractive living spaces and the task became even more complicated. Seeing all the pieces come together has been extremely gratifying."

Prism worked diligently to assemble an in-house team and design partners with deep expertise in the adaptive reuse niche. Its own Prism Construction Services, LLC is serving as the project's construction manager, which ensures the project's seamless transition from concept to reality.

A GOOD NEIGHBOR

"Parkway Lofts is an iconic building, recognized by everyone who drives on the Garden State Parkway," said Bloomfield Mayor Raymond J. McCarthy. "At the same time, few have gotten off the highway and driven into the neighborhood, to understand that this is really an industrial building in the middle of a residential community. This project will reinvent and transform an area that, until now, had missed the path of progress and growth. It is well on its way to becoming a thriving, desirable urban-living environment. As its redeveloper and visionary, Prism is establishing a destination as much as it is working with bricks and mortar."

Diaz noted that the project offers multiple long-term benefits. "The area will become safer, it will look nicer, and truck traffic and associated noise pollution will be eliminated," he said. "All of these improvements will enhance neighboring property values. Bloomfield and East Orange, the two townships that Parkway Lofts spans, will receive significantly more value in terms of property taxes. And the expanded 24/7 population will help to support neighborhood retail."

Additionally, in one of many efforts to establish the neighborhood's appeal as a residential hub, Prism met with the New Jersey Department of Transportation and secured $2.5 million for the purpose of upgrading the Watsessing Avenue Rail Station (located less than 100 yards from the development).

"The mass transit connection is so vital to our project," Diaz commented. "This station offers 25-minute NJ Transit Mid-town Direct service to Penn Station in Manhattan and is just one stop from Newark, with its concentration of medical and educational institutions. We anticipate that the most rental interest will come from singles and couples in the younger market segment, who desire to be at a transit hub but at a lower price point than they can find on the Hudson River waterfront or in New York City."

Prism will begin pre-marketing units at Parkway Lofts later this year, with introductory rates starting at $1,500.

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