Gateway Center investment the latest sign of revival in Newark

Joint venture of five companies are investing up to $50M in complex

TRD TRI-STATE /
Feb.February 04, 2019 10:00 AM

From left: Two and One Gateway Center in Newark (Credit: Google Maps)

A joint venture has purchased three of the four Gateway Center buildings in Newark with plans to spend millions upgrading the properties.

The partners – Prudential Financial, Garrison Investment Group, Onyx Equities, Taconic Capital Advisors and Axonic Capital –are setting aside up to $50 million to open new storefronts on the exterior walls of the buildings and help reintegrate the complex with the Newark streetscape, according to the Wall Street Journal. The properties are among the first buildings commuters see upon entering the city from Newark Penn Station.

The purchase price was $300 million, a source close to the deal told The Real Deal. Austrian lender BAWAG P.S.K. provided a $238 million loan. A JLL team of Jonathan Schwartz, Aaron Appel, Adam Schwartz and Max Herzog arranged the debt.

The joint venture’s buy of 1.8 million square feet of space at One, Two and Four Gateway Center also includes sites that have between 500,000 and 800,000 square feet of possible development space. The deal was valued at roughly $300 million.

It’s one of the latest initiatives meant to help revitalize Newark, the most public being the city’s almost-winning bid for Amazon’s second headquarters.

Overall, Newark has about $4.5 billion worth of development underway and has added 1,085 units of market-rate apartments between 2015 and 2018. However, it is still struggling with issues including a 28 percent poverty rate and elevated lead levels in drinking water.

Newark Mayor Ras Baraka told the Journal that the Gateway Center investment has put the city in a good position to receive investments in the Opportunity Zone program, and he is confident about its chances at revival.

“We have a long way to go, and we are still crafting what we need to see,” he said, “but we have enough clay to do that.” [WSJ] – Eddie Small


Related Articles

arrow_forward_ios
Mayor Bill de Blasio and Gov. Andrew Cuomo (Getty, Paul Dilakian)

Despite looting, NYC reopening on track: Cuomo

Despite looting, NYC reopening on track: Cuomo
(Photos by Sylvia Varnham O'Regan, Getty)

After looting, BIDs reverse guidance on boarding up stores

After looting, BIDs reverse guidance on boarding up stores
“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think
Clockwise from bottom left: Robert Reffkin of Compass, John Gomes, Scott Rechler of RXR Realty, Rich Barton of Zillow, Gary Keller of Keller Williams and Don Peebles of The Peebles Corporation (Getty)

“America is in crisis:” Real estate leaders address George Floyd protests

“America is in crisis:” Real estate leaders address George Floyd protests
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Photo illustration of Sen. Brian Kavanagh (Credit: Kavanagh by Albin Lohr-Jones/Pacific Press/LightRocket, Getty Images, iStock)

Lawmakers skip #CancelRent in favor of more modest bills

Lawmakers skip #CancelRent in favor of more modest bills
arrow_forward_ios

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

Loading...