There was still plenty of construction dust and the majority of wooden frames were still exposed, but developer Jonathan Strauss stood in what will be the lobby of the future Walnut Square Apartments and described a room with a polished concrete floor and plush furniture.
The three-story building that is going up at Eighth and Walnut streets in Allentown is being built as affordable housing, but Strauss said it will be a first-class structure that will serve as a gateway to downtown and include space and amenities that are found at nearby market-rate buildings.
“It’s going to be a really elevated look,” said Strauss, co-founder of Cortex Residential. “When people think about affordable housing, they think you can’t build it in a way that’s also beautiful. We’re trying to debunk that idea.”
Strauss gave a tour Thursday afternoon to state Sen. Nick Miller to show the progress being made on the $15 million, 44,010-square-foot project that will bring 38 apartments to the downtown. The building is a block south of PPL Center and is replacing a parking lot and parish house next to Life Church at 40 S. Eighth St.
Despite the harsh winter weather, Strauss said the building is scheduled to be completed in October with pre-leasing applications being accepted in the late summer. Construction has moved along swiftly — groundbreaking was last November — as Cortex used different methods such as constructing some parts of the building offsite and trucking them in.
The entryway at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
State Sen. Nick Miller and Jonathan Strauss of Cortex Residential during a tour at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The view from the Walnut Square Apartments site at the intersection of Walnut and 8th Street Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The view from the Walnut Square Apartments site at the intersection of Walnut and 8th Street Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The view from the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Construction helmets at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Jonathan Strauss of Cortex Residential and State Sen. Nick Miller tour the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
State Sen. Nick Miller and Jonathan Strauss of Cortex Residential tour the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Jonathan Strauss of Cortex Residential opens a window during a tour at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
State Sen. Nick Miller asks Jonathan Strauss of Cortex Residential questions during a tour at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The view from the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
A bedroom during a tour of the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Jonathan Strauss of Cortex Residential and State Sen. Nick Miller tour the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Jonathan Strauss of Cortex Residential speaks during a tour at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Jonathan Strauss of Cortex Residential speaks during a tour at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
State Sen. Nick Miller asks Jonathan Strauss of Cortex Residential questions during a tour at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
The Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Jonathan Strauss of Cortex Residential speaks during a tour of the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
State Sen. Nick Miller and Jonathan Strauss of Cortex Residential tour the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Jonathan Strauss of Cortex Residential and State Sen. Nick Miller tour the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Notes on cardboard during a tour at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
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The entryway at the Walnut Square Apartments site Thursday, April 16, 2026, in Allentown. Walnut Square is downtown Allentown’s first new affordable housing development. (Jane Therese/Special to The Morning Call)
Overall, framing was completed in just 3 ½ weeks, Strauss said, as a top-down method was used to expedite the timeline and reduce costs.
“There’s tricks and trades that you learn in construction to keep things moving,” he said. “As soon as we pulled the crane, we started the backfill and frame, as opposed to waiting.”
A private company, Cortex specializes in affordable apartments financed by state and federal tax credits. Walnut Square will serve residents with Area Median Income bands of between 20% and 60%. AMI, calculated by the U.S. Department of Housing and Urban Development, represents the midpoint of a region’s income distribution.
A one-bedroom apartment will start at $375 a month, while a three-bedroom, designed for a family of four, will go for about $1,100. Rates will vary depending on income. There are also two-bedroom units.
One-bedroom apartments are 750 square feet, about 200 feet larger than the mandated minimum. Two-bedroom apartments are between 850 and 900 square feet, and three-bedroom apartments are up to 1,150 square feet and feature an additional half-bath.
In the foreground is the future Walnut Square Apartments at Eighth and Walnut streets in Allentown. (Courtesy of Cortex Residential)
“A lot of times people think affordable housing is for folks that can’t work,” Strauss said, “but we’re talking about an issue that’s affecting teachers, firefighters, police officers, folks that are in the workforce.”
The project received funding through a $1.43 million low-income housing tax credit from the Pennsylvania Housing Finance Agency for a 10-year period. In addition to the tax credit funding, Cortex also benefited from a $2 million grant from Allentown and around $600,000 from Lehigh County, both from American Rescue Plan coffers.
When completed, the building will feature a community room, a business center featuring computer desks and management and supportive services offices. The building is being designed to be energy efficient.
Residents will have parking privileges across the street at the Eighth and Walnut Deck in a deal set up between Cortex and City Center Group.
Even though Walnut Square sits just outside the city’s Neighborhood Improvement Zone, Allentown’s unique tax subsidy zone, Strauss said the NIZ, in a way, made the Walnut Square project possible as the parking garage is inside the district and zoning requires the building be near accessible parking.
Allentown-based Cortex was co-founded in 2021 by Strauss, who previously worked for City Center.
“We’re not shy to say we’re for-profit — but we’re for-profit with a mission,” Strauss said. “We’re looking at a longer time horizon… we’re willing to be patient in earning that return.”
Morning Call reporter Evan Jones can be reached at ejones@mcall.com.