Verizon secures $20M in tax credits to stay in Newark

New York /
Oct.October 29, 2008 05:51 PM

New Jersey awarded its first-ever urban transit hub tax credit to Verizon New Jersey Inc., under a sale-leaseback agreement with Accordia Realty Ventures that will keep the phone company headquarters in the city of Newark, officials said.

Verizon, which had previously announced plans to leave its Newark headquarters, will receive $20 million in tax credits over 10 years under the state’s new program, which is designed to encourage businesses to operate near commuter rail stations.

The program offers tax credits to companies that locate within a half mile of a N.J. Transit, PATCO or PATH station in one of nine N.J. cities, including Hoboken, Jersey City, Elizabeth and other areas.

Verizon officials said the company had planned to consolidate its Newark call center operations with two other facilities in Scotch Plains and Madison, N.J., but the proposed credit was signed into law during the past year and the company decided it would maintain is presence in Newark.

“We have a commitment to the city of Newark,” said Rich Young, spokesman for Verizon.

Fairfield, N.J.-based Accordia earlier this year agreed to buy the 428,000 square-foot Verizon building at 540 Broad Street, and to lease 140,000 square feet back to the telecom giant over 10 years. Officials did not release a sales price, but sources familiar with the agreement say Accordia paid about $35 million for the building.

Officials said they are looking to lease the remaining 300,000 square foot space to one or more corporate tenants, who would also qualify for the tax credit.

“What you’re trying to do is create a situation where you are keeping economic development and jobs in a major city near a transit location,” said Glenn Phillips, spokesman for the New Jersey Economic Development Authority. “In Newark it’s particularly relevant because it’s also going to help bring other tenants.”

Joe Romano, principal at Accordia, said about $75 million will be spent to build out the space and upgrade other parts of the building, including the lobby and an old theater, which will be converted into a conference center. GVA Williams will market the new space for about $20 a square foot, and Romano said that a 12,000 square-foot retail space will be available for a restaurant or other retail tenant.

Joe Ritchie, chief executive of the Brick City Development Corp., the main economic development agency in Newark, said the city is recruiting financial services and technology companies to relocate their back-end operations there, as Broad Street sits on top of a major broadband pipeline that is designed for high-speed data operations.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Kevin Baker (Photo via Landmark Commercial Real Estate Services)
Detroit real estate executive killed in hit-and-run in Miami Beach
Detroit real estate executive killed in hit-and-run in Miami Beach
Architect Kobi Karp, Developer Todd Glaser and renderings of the mansion (Glaser, Karp)
Palm Beach board rejects “alien” design of mansion for former Epstein property
Palm Beach board rejects “alien” design of mansion for former Epstein property
Zillow CEO Rich Barton (Zillow, Getty)
Zillow rides strong housing market to $9.6M profit in Q2
Zillow rides strong housing market to $9.6M profit in Q2
NY investment sales market roars back
New York City investment sales market roars back
New York City investment sales market roars back
TRD’s South Florida Event Is Back
TRD’s South Florida Event Is Back
TRD’s South Florida Event Is Back
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...