LeFrak awaits tenant to break ground on latest Jersey City office building

TRD New York /
Apr.April 18, 2012 10:00 AM

The LeFrak Organization is all set to break ground on the latest new construction for its 25-years-in-the-making, $10 billion Newport development in Jersey City. According to the New York Times, all it needs is an office tenant. LeFrak has already erected 14 apartment buildings, seven office buildings and a shopping mall to Newport, but has recently slowed its development pace. The last office building went up in 2003.

It wants to start work on Pier 6, where it could add up to 1.25 million square feet of office space. The first building may rise to 17 stories, but its size would ultimately depend on what kind of tenant agrees to take space. A tenant would have to commit to at least 300,000 square feet to make the project feasible.

“We wouldn’t have stayed in business for 100 years if we were doing wild speculation,” said Jamie LeFrak, a principal of the company.

The complex is expected to cost $100 million to $300 million, and the rents will be far below Manhattan’s. The Hudson waterfront in New Jersey typically commands rent of about $38 per square foot for Class A space, but state tax credit programs could reduce the effective rents to about $20 per foot, the Times said.

As several financial firms, including Citigroup, Fidelity Investments and Depository Trust and Clearing Corporation, have made commitments to New Jersey from Manhattan of late, LeFrak expects a similar tenant to be the impetus for the Pier 6 groundbreaking. [NYT]


Related Articles

arrow_forward_ios
30 Hudson Street in Jersey City and WeWork CEO Sandeep Mathrani (Wikipedia)

WeWork scores big lease at Goldman Sachs’ Jersey City office tower

WeWork scores big lease at Goldman Sachs’ Jersey City office tower
Loew’s Theater at 54 Journal Square Plaza in Jersey City and Jersey City Mayor Steve Fulop (Google Maps, Getty)

Jersey City moves forward with $40M renovation of Loew’s Theater

Jersey City moves forward with $40M renovation of Loew’s Theater
Richard LeFrak with Gateway Plaza at Battery Park City (Credit: LeFrak by John Lamparski/WireImage; Olnick Organization)

Judge OKs $42M settlement by LeFrak, Battery Park City tenants

Judge OKs $42M settlement by LeFrak, Battery Park City tenants
An aerial view and a rendering of The Element at 400 Claremont Avenue (Credit: Google Maps)

Jersey City mixed-use project lands $120M in financing

Jersey City mixed-use project lands $120M in financing
Gateway Plaza and Richard LeFrak (Credit: Getty Images)

LeFrak settlement over scorching and freezing apartments adds up to $42M

LeFrak settlement over scorching and freezing apartments adds up to $42M
Airbnb lost by a landslide in Jersey City. What went wrong?

Airbnb lost by a landslide in Jersey City. What went wrong?

Airbnb lost by a landslide in Jersey City. What went wrong?
Results are in from Jersey City Airbnb referendum

Airbnb deflated as Jersey City voters tighten rental rules

Airbnb deflated as Jersey City voters tighten rental rules
A new rent law is causing confusion (Credit: iStock)

Widespread confusion over preferential rents opens the door for rent hikes

Widespread confusion over preferential rents opens the door for rent hikes
arrow_forward_ios

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

Loading...