Fairmount Properties engaged ESI to prepare a financial feasibility analysis supporting an application to the New Jersey Economic Development Authority’s (NJEDA) Aspire Tax Credit Program for the proposed Rowan Wellness District. The client sought to demonstrate that the large-scale mixed-use development would not be financially feasible without public support and that the requested tax credit was necessary to close the project’s financing gap.
The Rowan Wellness District is envisioned as a transformational 200+ acre health and innovation district integrating healthcare, research, advanced manufacturing, hospitality, retail, senior living, and residential uses. Given the scale, phased construction schedule, and diverse asset mix, the project required a rigorous review of development costs, market assumptions, capital structure, and projected investor returns.
ESI conducted a comprehensive financial feasibility review using project budgets, development schedules, market data, and operating assumptions, provided by the developer. The analysis evaluated total project costs, eligible Aspire costs, financing sources, anticipated operating revenues and expenses, and long-term asset values across all development components.
The team developed a 15-year pro forma model comparing two scenarios: a base case including Aspire tax credit support and a “without incentives” scenario. ESI assessed expected rents, vacancies, capitalization rates, construction financing terms, permanent debt assumptions, and terminal sale values for each component. This scenario-based modeling enabled the client and NJEDA to clearly understand the extent to which the incentive improved financial viability and investment returns.
The feasibility study positioned the Rowan Wellness District to compete for state incentive funding and move toward implementation. If developed as planned, the project would create long-term economic value through new housing, healthcare services, innovation space, hospitality uses, and a significant new local tax base. The district also establishes a framework for continued collaboration among private developers, healthcare providers, educational institutions, and public agencies.
