The Hampshire Companies acquired 250 Essex Street in Hackensack, N.J.
The transaction marks Hampshire’s first Opportunity Zone investment, focusing on the development of projects in low-income urban and rural communities that have earned the Opportunity Zone designation under the new federal program.
Hampshire is partnering with Paramus-based Danitom Development to redevelop the .69-acre parcel.
Created by the Tax Cuts and Jobs Act of 2017, the Opportunity Zone program is designed to spur economic development through providing preferential tax treatment for real estate investments in areas deemed as Qualified Opportunity Zones in all 50 states.
In New Jersey, the federal government has approved zones across 75 municipalities and 169 census tracts. Hampshire will utilize its time-tested business and investment acumen to strategically identify sites within identified Opportunity Zones in the northeast for future development.
“Our legacy of cycle-tested investments and hands-on development approach puts us in a unique position to leverage the investment benefits offered by Opportunity Zones while working to improve our cities, towns and our local economy,” said James E. Hanson II, President & CEO of The Hampshire Companies. “Our focus within these zones will be the development of multi-family, industrial and self-storage assets along the I-95 corridor throughout the northeast.”
Previously the site of the now-shuttered Arena Diner, 250 Essex Street offers a highly-desirable location positioned directly across the street from Hackensack University Medical Center, one of the state’s largest hospitals, and less than a quarter mile from NJ Transit’s Essex Street Station with service to New York City via the Pascack Valley Line.
“Hackensack was quickly identified as an excellent market for us to make our first Opportunity Zone investment given its ideal location, strong local demographics, and its proximity and accessibility to mass transit,” added John Durso, Vice President and Portfolio Manager of The Hampshire Companies. “While this project marks our first Opportunity Zone investment, we have a long history in Hackensack and are looking forward to working with the city to revitalize the site.”
Greg James, Director of Capital Markets for NAI James E. Hanson, represented The Hampshire Companies in the transaction.