Mack-Cali brings Whole Foods regional HQ to Jersey City, $85M Englewood apartment complex for sale & more North Jersey real estate news

TRD TRI-STATE /
May.May 07, 2019 06:30 PM

From Left to Right: Whole Foods inks leases at Mack-Cali Realty’s Harborside development in Jersey City; an Englewood luxury rental complex hits the market at $85M; Prism Capital Partners retains an architect to design its ON3 office space; and JMF Properties breaks ground on a new Clarus-branded luxury community in Glen Ridge.

Whole Foods to open regional HQ, store in Jersey City
Mack-Cali Realty, a Jersey City-based real estate investment trust, has been busy this month battling activist investor Bow Street Capital and planning the sale of a 188,408-square-foot office building in Neptune. Real Estate NJ reported Monday that Mack-Cali had also inked two leases with Amazon-owned Whole Foods for its Harborside development on the Jersey City waterfront. The Amazon-owned grocery chain will occupy 47,398 square feet at Harborside 3, a 725,600-square-foot mixed-used property adjacent to the NY Waterway Harborside ferry terminal, Exchange Place PATH Station and the Harborside-Bergen Light Rail station. Whole Foods also plans to open another 47,542-square-foot supermarket location at Mack-Cali’s Harborside 4A. Whole Foods will relocate its regional offices from Englewood Cliffs. The Whole Foods deal with Mack-Cali was noted in the REIT’s first quarter operating report, according to JerseyDigs. Neither Mack-Cali nor Whole Foods have confirmed a timeline for the headquarters relocation and subsequent store opening. Mack-Cali’s Harborside 1, 2 and 3 were purchased by the company in 1996 after having previously been owned by the Pennsylvania Railroad since their construction in 1929. The land was converted to office space in 1982 and in recent years Mack-Cali has embarked on a $75 million upgrade of the area, adding retail and restaurant space. [RE-NJ]

Englewood luxury apartment complex hits the market at $85M
BNE Real Estate Group, Boston-based GID and Sterling Properties announced plans last week to offload a 185-unit One William luxury complex in Englewood, Real Estate Alert reported. The joint venture is seeking to trade the property at 1 William Street, which opened in May 2018 and is now 98 percent leased, for $85 million. That would represent an initial yield of 4.75 percent, according to REA, which noted that BlueGate Partners will advise the selling party. Amenities at the development include a pool terrace with a swimming pool, private barbecue stations, a courtyard, private fitness center, children’s playroom, and a Wi-Fi lounge with work stations and conference rooms, according to NorthJersey.com. The five-story Englewood complex, as previously noted by TRD, was developed on the site of a former firehouse and school. Englewood sold the land to BNE and Sterling Properties, both of which are based in Livingston, for $7.9 million in 2017. Capital One Bank was the lead lender for development of the property, which was also awarded a 15-year PILOT, starting at 12 percent. [REA]

Prism Capital retains architect for ON3 office space
Chicago-based Goettsch Partners — the architectural firm behind the redevelopment of Chicago Union Station — has been retained by Prism Capital Partners to design a pair of Class A towers comprising 400,000 square feet of office space at the former Hoffmann-La Roche campus in Clifton and Nutley. ROI-NJ reported that Quest Diagnostics, Ralph Lauren and the Hacksensack Meridian School of Medicine at Seton Hall University have operations at the site, which has been rebranded as ON3, as noted by The Real Deal earlier this year. Prism Capital has owned the 116-acre site since 2016. NorthJersey.com noted that the Clifton planning board approved a zoning change to permit the construction of two hotels on 11 acres at ON3 that will add 250 hotel rooms to the site. The developer broke ground in November on a new 250,000-square-foot ON3 office property that will be home to Quest Diagnostics’ largest laboratory. Both Ralph Lauren and Quest Diagnostics were recipients of an $88 million state tax incentive granted by New Jersey’s Economic Development Authority in November 2017. The redevelopment site is also getting tax incentives from the City of Clifton and the Township of Nutley. [ROI-NJ]

7-building portfolio in Fairfield sells for $30M
An unidentified buyer snapped up seven industrial and office/flex buildings in Fairfield — the township in Essex County, New Jersey, not the Connecticut county of the same name — in a deal valued at more than $30 million, broker and Sheldon Gross Realty executive vice president Robert Nathin said in a press release. The 315,800-square-foot portfolio includes three properties on Clinton Road, two on Lehigh Drive, one on Dwight Place and one on Industrial Road. Sheldon Gross executive vice president and property manager Marcy Gross managed the properties for 20 years, according to the brokerage. “[The sale] speaks to what an attractive location Fairfield is for business, for multiple reasons,” said a statement from the West Orange-based Nathin, adding that the location of the portfolio on the border of Morris and Passaic counties is “remarkable.” [Patch]

Newark’s FlatRate Storage sold for $30M to REIT
Marcus & Millichap closed on the $30 million sale of a 1,777-unt, self-storage facility in Newark last week, according to NJBIZ. The brokerage represented the seller and the buyer, a real estate investment trust sponsored by SmartStop Asset Management, which acquired the FlatRate Storage complex. Marcus & Millichap also facilitated a leaseback to the REIT to continue FlatRate’s operations, according to Commercial Property Executive. The three-building property, located at 856-882 Frelinghuysen Avenue, also includes two parking lots and 32 loading docks. The 6.25-acre facility is located 3.8 miles from Newark Liberty International Airport. SmartStop manages $1.9 billion in assets and operates 129 self-storage facilities throughout the country and Canada. Strategic Storage Trust IV, a non-traded REIT controlled by Orange County, California-based SmartStop, operates 16 self-storage facilities comprising 1.3 million net rentable square feet of space. The Real Deal reported last year on a $15.7 million purchase of an 870-unit storage facility in South Florida to SmartStop’s Strategic Storage Trust. [NJBIZ]

Woodbridge issues RFP for 54-acre Avenel complex
The Township of Woodbridge issued requests for qualifications and proposals for the Woodbridge Developmental Center at 289 Rahway Avenue this week, according to Real Estate NJ. The outlet noted that the area, which once housed residents with developmental disabilities, has been designated an area in need of redevelopment, therefore qualifying for tax incentives. RE-NJ reported the town is not seeking proposals for residential use at the 54-acre site, but instead commercial, educational and health care-related uses. New Jersey Gov. Phil Murphy authorized last August the $5 million acquisition of the former state-owned institute for the disabled. The facility was closed in late 2014 by New Jersey’s Department of Human Services after 50 years in operation. Woodbridge officials are reportedly also open to proposals to now convert the site to industrial use, given the strong demand for such space in the Avenel submarket. The Real Deal has recently noted soaring industrial rents in the Exit 12 New Jersey Turnpike submarket, which includes Avenel. [RE-NJ]

Century-old Victorian home in Short Hills relists at $8M
A stone Victorian home on 2.4 acres in Old Short Hills has hit the market seeking $7.95 million, according to JerseyDigs. The 5,255-square-foot home located at 85 Stewart Road has seven bedrooms and six bathrooms. Built in 1887, the home was also recently renovated to include a cabana, detached four-car garage, a courtyard, a tennis court, a swimming pool and a regulation-size squash court on its lower level. The property itself hit the market last summer asking almost $8 million, but its listing was removed in December, according to Zillow, which shows that the home first came on the market in April 2011 at nearly $9.4 million. Property records show that portfolio manager Evan Lamp owns the parcel. Proximal to the century-old home are the private Short Hills Club, the East Orange Golf Course, the community’s local New Jersey Transit station and the high-end Mall at Short Hills, where co-working space Industrious recently signed a lease for 30,000 square feet of space. [Jersey Digs]

JMF Properties breaks ground on Glen Ridge luxury community
Whippany-based developer JMF Properties broke ground last week on a 110-unit residential development in Glen Ridge, NJBIZ reported. The development, near downtown Montclair and the New Jersey Transit Bay Street station, is the second Clarus-branded development from JMF. Plans at the site, located at 275 Baldwin Street, call for one and two-bedroom floorplans and 8,500 square feet of amenity space for a business center, fitness room, yoga studio and lobby lounge, all of which will be available to potential residents. JMF said that a 220-space parking garage adjacent to its Clarus Glen Ridge complex has already been completed. NJ.com reported that the development itself is slated to open in early 2020. The Real Deal reported last year that JMF also broke ground on a $50 million development in Plainfield known as Quin Sleepy Hollow, which will bring 212 luxury units to the Union County city. JMF is also working with RD Management and Accurate Builders and Developers on a 14-acre residential site they acquired in late 2018 at the former Military Ocean Terminal in Bayonne. The joint venture partners are planning to bring 651 luxury residences to the area, which is near the Bayonne Golf Club, a $150,000 initial fee course built on a former landfill. [NJBIZ]

Sussex County apartment complex sells for $16.6M
Alpine Village Apartments, a 134-unit multifamily complex in the Borough Center area of Wantage Township, was sold late last month for $16.59 million, according to ROI-NJ. The outlet reported that Livingston-based brokerage Gebroe-Hammer Associates brokered the deal, representing both the seller and procuring the buyer, a private investor. Real Estate NJ reported that the Sussex County property is a garden-style community located at the crossroads of Routes 23 and 284. “As one of the nation’s most historic boroughs with a high concentration of pre-World War II housing units, Sussex has a residential population where approximately 68 percent are renters,” said a statement from Gebroe-Hammer executive vice president Stephen Tragash, who in March also brokered the $17.9 million sale of the 168-unit Landmark West Apartments in Sussex. The Alpine Village Apartments reportedly feature a mix of one- and two-bedroom units ranging from 808 to 1,090 square feet. [ROI-NJ]


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