Detectives seized 1,756 bags of heroin during a raid of the Spruce Street home in the shadow of a Route 80 overpass, city Public Safety Director Jerry Speziale said.
Complaints from citizens about open-air drug dealing off the corner of Spruce and Grand streets brought the investigators, he said.
They found the youngsters -- all girls, ages 2, 6 and 10 -- "in the apartment with an uncle during the raid," the director said.
Edwardo Lafrank, 36, was charged with possession of the heroin for sale, among other counts. Jordani Ruiz, 24, was charged with having the cocaine for sale.
Two buyers -- a 33-year-old man from Newton and a 32-year-old woman from Nutley -- were also arrested with cocaine and heroin, respectively, Speziale said.
The girls were released to their grandmother and state child protection authorities were notified.
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