Allentown, Pennsylvania – November 5, 2025 – Cortex Residential, a mission-driven developer of affordable housing, celebrated the groundbreaking of Walnut Square Apartments, a 38-unit, ground-up affordable housing project located at 40 South 8th Street at the corner of South 8th and Walnut Streets in Allentown. The ceremony marks the official start of construction on this much-anticipated development.
“Today’s groundbreaking represents a meaningful step toward expanding affordable housing options in Allentown,” said Jonathan Strauss, Co-Founder and Partner of Cortex Residential. “Walnut Square will provide high-quality, energy-efficient homes for individuals and families with lower and moderate incomes, and we are proud to bring this project to life in the heart of the city.”
The three-story, 44,010-square-foot development will feature 29 one-bedroom, 3 two-bedroom, and 6 three-bedroom apartments. Four units will serve households at or below 20% of the area median income (AMI), with the remaining units affordable to households at or below 50–60% AMI. Walnut Square Apartments will include a welcoming lobby, a community room with kitchenette for resident gatherings, and offices for management and supportive services. The project is being designed to achieve LEED Silver certification and a reduced HERS index, reflecting Cortex Residential’s commitment to sustainable and energy-efficient housing.
The development is financed through 9% Low-Income Housing Tax Credits from the Pennsylvania Housing Finance Agency (PHFA), as well as grants funded by the American Rescue Plan Act (ARPA) through the City of Allentown and Lehigh County.
State and local officials joined the ceremony to celebrate the project, including State Representative Peter Schweyer and State Senator Nick Miller, who were instrumental in advocating for the tax credit award.
“I am proud that PHFA has recognized the value of this project,” said Representative Schweyer. “Walnut Square will create safe, affordable housing for working families, seniors, and individuals in our community, ensuring long-term affordability for decades to come.”
Senator Miller added, “Walnut Square is a significant step forward in the ongoing revitalization of Allentown’s downtown core,” said Senator Miller. “This project will create jobs, provide much-needed housing options in the heart of the city, and ensure that more residents can enjoy stable, high-quality living. While affordable housing exists elsewhere in Allentown, Walnut Square is the first development of its kind in the immediate Downtown in over a decade, and it will play an important role in strengthening the community and supporting its growth.”
Construction on Walnut Square Apartments is expected to be completed in early Q3 2026, delivering much-needed housing to downtown Allentown and further supporting the city’s ongoing revitalization efforts.
About Cortex Residential
Cortex Residential (Cortex) is a fast-growing acquirer, developer, and owner of affordable and attainable rental housing. Focused on both preserving existing communities and developing new ones, Cortex is committed to addressing America’s affordable housing shortage while delivering financial, social, and environmental benefits.