Arrow secures $80M refi for Newark high school project (updated)
Listen to this articleThe basics:
- Arrow arranged $80M financing to support completion of Newark’s new trade high school at 155 Jefferson St.
- Project converts former St. James Hospital into a 190,000-SF education facility
- Phase two will add a gym and auditorium; delivery expected by June 2025
- Total $315M cost makes it the most expensive high school in New Jersey
New note-on-note financing will go toward completing Newark’s latest public high school, the most expensive in state history.
Arrow Real Estate Advisors exclusively revealed to NJBIZ Nov. 17 closing funding totaling $80 million, arranged on behalf of the borrower. The latest will facilitate construction completion financing for 155 Jefferson St.
Formerly the St. James Hospital, the site now houses the 65th school in the city. After the health care facility shuttered in 2008, the first students started at the Newark High School of Architecture & Interior Design Sept. 2. The five-story building comprises 190,000 gross square feet.
The funding will refinance existing debt, Arrow said, along with completing phase two of the project. The real estate finance advisory firm declined to detail how many funds would go to support the remaining build or restructuring finances.
A ‘strong foundation’
Founder and Managing Partner Morris Betesh, Senior Vice President Omar Ferreira and Associate Jacob Petrovic arranged the transaction.
“155 Jefferson represents a transformative project for Newark’s East Ward, converting a historic property into a best-in-class trade school that will serve the next generation of skilled professionals,” Betesh said. “The city’s backing and … [the borrower’s] execution track record created a strong foundation for us to structure financing that balanced impact with security.
“This transaction showcases Arrow’s ability to align capital with meaningful, community-driven development.”
Arrow said it worked closely with both the borrower and note-on-note to craft the package. Despite strong fundamentals, the project presented several challenges. The firm highlighted complications due to the unique educational use at the site. It also cited the phased construction timeline and balancing the refinance with new development capital.
The note-on-note lender also required enhanced diligence around the tenant’s income stability, credit strength and assurances regarding the guaranty structure supported by by the City of Newark, Arrow said.
By showcasing the project’s advanced construction progress, city-backed tenancy and the sponsor’s proven execution capability, Arrow successfully negotiated a flexible and secure financing structure that will allow the project to reach completion and deliver long-term community benefits.
Hitting the books
The new high school offers several tracks for students to choose from, such as Architecture, Engineering, Interior Design, Electronics, Heating, Ventilation and Air Conditioning, Plumbing and Real Estate.
According to TapInto Newark, ninth graders in the inaugural Class of 2029 began classes under a temporary certificate of occupancy at the facility.
Originally set for delivery in 2023, the project has been beset by delays. The Newark school board amended its agreement with the property owner and developer in May of this year. TapInto reported the changes to the 30-year lease will produce a price tag of $315 million. The original 20-year agreement’s value came in at $160 million.
That reporting identifies the property owner as 155 Jefferson Street Urban Renewal LLC, an entity associated with Summit Assets.
The first phase completed the main building and facilities. Due by June 1, 2026, the remaining work will produce a new gym and auditorium.
The $315 million figure places the academy well beyond the current title holder for most expensive school construction project. Perth Amboy High School opened doors on its $284 million revamp in 2024.
Editor’s note: This story was updated at 11:54 a.m. EST on Nov. 18, 2025, to update transaction details.
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