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

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
Jeff Bezos and the Jersey City office property (LoopNet, Getty)
Amazon scraps 400K sf Jersey City office deal
Amazon scraps 400K sf Jersey City office deal
Amazon eyeing 400K sf office in Jersey City
Amazon eyeing 400K sf office in Jersey City
Amazon eyeing 400K sf office in Jersey City
99 Hudson Street in Jersey City, NJ (99 Hudson Living)
$4.4M condo sale breaks Jersey City record
$4.4M condo sale breaks Jersey City record
Greg Fowler bought 10 Clapboard Road, CT and Amir Ben-Yohanan bought 150 and 154 Belmont Ave. in Jersey City (FPAMF, Realtor, West of Hudson Properties, Google Maps)
Multifamily assets sell for $41M in Fairfield County, $21M in Jersey City
Multifamily assets sell for $41M in Fairfield County, $21M in Jersey City
Birch Group President Mark Meisner and 101 Hudson Street in Jersey City, NJ (The Birch Group, Google Maps)
Birch Group paying $380M for large Jersey City office
Birch Group paying $380M for large Jersey City office
Mayor Steven Fulop (Getty, iStock)
Jersey City to provide up to $10K more rent relief per tenant
Jersey City to provide up to $10K more rent relief per tenant
Mayor Steven Fulop (Getty, iStock)
Jersey City mulls stricter building inspections after Surfside collapse
Jersey City mulls stricter building inspections after Surfside collapse
Loew’s Theatre in Jersey City (Google Maps)
Loew’s Theatre in Jersey City set for $72M rehab
Loew’s Theatre in Jersey City set for $72M rehab
arrow_forward_ios

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

Loading...