Office tower strategically located in midst of city transformation
JLL has been selected to sell One Newark Center on behalf of a joint-venture between an affiliate of The Praedium Group LLC and Mack-Cali Realty Corp. The firm will provide a full range of marketing services for the iconic Class A, 423,028-square-foot commercial office building strategically located in the heart of Newark.?
One Newark Center is strategically located on Raymond Boulevard between McCarter Highway and Mulberry Street, just one block from historic Military Park and one block from Newark Penn Station. The building’s proximity to the train station provides tenants with NJ Transit, PATH and Amtrak service to New York and points along the Northeast Corridor, as well as access to the Newark Light Rail system.
“Newark is progressively transforming into a true 24/7 live/work/play environment. The transit-oriented destination is leveraging its unparalleled infrastructure to attract a tenant pool that’s broader than traditional law firms and back-office operations,” said Thomas Walsh, managing director of JLL’s New Jersey office. “It seems that every week Newark has a ribbon-cutting for a multi-family development or new retailer and that is steadily chipping away at the city’s perceived non-institutional stigma. You’d be hard pressed to find another mid-sized city in the Northeast with suchorganic growth.”
“Jersey City, Hoboken, Metropark and Morristown are all experiencing historically high occupancy and rental rates, which puts Newark in an ideal position to entice transit-minded tenants,” saidJoseph Garibaldi, managing director,who oversees JLL’s New Jersey Capital Markets. Investor interest in Newark has never been higher, he noted, as evidenced by the December 2016 sale of the 337,500-square-foot Two Riverfront Plaza and the October 2016 sale of the 973,000-square-foot 80 Park Plaza, both of which are located one block from One Newark Center.
The sale includes the sixth through the 22nd floors of One Newark Center, totaling 423,028 square feet.The first five floors are owned and occupiedby Seton Hall Law School. The offering also includes a 10-story, 945-space parking structure that is physically connected to the office tower.
“As urban infill continues to occur around the property, One Newark Center is well positioned to take advantage of the retail and business opportunities that are coming to Newark,” said Brian Lindenberg, a vice president with Praedium. “The office tower further strengthens the reputation of businesses that choose to operate their business in one of the most highly sought-after, best-in-class, multi-tenanted office buildings in the city.”
Newark’s long-touted renaissance is truly coming to fruition with a pipeline as diverse as any submarket in New Jersey. Approximately 7,500 residential units have either been built or are under construction within 1,500 yards of One Newark Center, which is creating a vibrant street life that Newark hasnot experienced in a generation. Following Prudential’s 2012 announcement to develop a world-class headquarters along Broad Street, a number of stalled development projects have either sincebeen completed or are now underway, including Hahne& Co., One Theatre Square, One Riverview, the Carlton Hotel and several others.
“It isn’t just residential or build-to-suit office driving the market. Newark is investing in its green spaces,” said Walsh. “The city is revitalizing historic Military Park and recently announced that the 22-acre Mulberry Commons will transform acres of surface parking lots into a “High Line-esque” park, bridging the central business district with the Ironbound neighborhood.”
One Newark Center offers auniqueamenitiespackage that includes a full-service café, featuring an outdoor patio, and an on-site parking garage for 945 cars. The office building’s location provides tenants with a wealth of retail and restaurant options, and cultural attractions such as the New Jersey Performing Arts Center; the Prudential Center, which will open the new Grammy Music Experience later this year; and the Newark Museum. The 22-story office building was constructed in 1992 and offers easily-divisible floor plates ranging from 22,000 square feet to 26,000 square feet, some with outdoor balconies.
JLL’s capital markets team overseeing the disposition includesGaribaldi; Walsh; Stephen Feinberg, vice president; and Katelyn Borovsky, associate;whileJLL’s Jon Meisel, managing director;Chris Conklin, vice president;and Conor Dolan, associate serve as leasing agents.All JLL personnel are working closely with Brian Lindenberg at Praedium.
