Emergency crews said that just after 6 p.m., they were dispatched to the Fountainview Apartments for an automatic fire alarm.
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When units arrived, they found water damage on all floors. Officials determined it was caused by a ruptured sprinkler pipe on the fourth floor.
Fire crews evacuated approximately 120 people from about 64 apartments.
The City of Newark building inspectors later determined the building was uninhabitable.
There were no injuries as a result of this incident. Most of the evacuated residents have temporarily relocated to family or friends, according to officials.
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Residents who were unable to find housing were temporarily relocated to the Aetna Hose, Hook & Ladder Company Hall on Ogletown Road.
The American Red Cross was requested to assist with longer term sheltering arrangements.
Fire officials were still on the scene as of about 8:30 p.m. Wednesday night. All electric power has been shut off in the building.