LeFrak looks to sell another Jersey City office building
Newport Centre developer sold another waterfront property nearby earlier this year
The LeFrak Organization is looking to sell another one of its office buildings on the Jersey City waterfront.
The company, led by prominent developer Richard LeFrak, has put the 22-story Newport Centre 4 office building on the market with an asking price north of $400 million, sources told The Real Deal.
The asking price works out to more than $425 per square foot for the building, whose address is 545 Washington Boulevard.
A representative for the LeFrak Organization, which owns other properties in Jersey City’s Newport neighborhood, declined to comment.
The Newport Centre 4 property is 95.5 percent leased with major tenants including JPMorgan Chase and Insurance Services Office, according to marketing materials.
JPMorgan, which owns a building nearby at 575 Washington Boulevard, has a right of first offer on the property. Newport Centre 4, constructed in 2001, is being pitched as a cash-flow asset with future upside.
The property has more than $355 million of contractual base revenue coming through over the next 14 years. And the offering teaser notes that a new owner could amenitize the building to help boost below-market rents on leases that begin to expire in 2021. At a capitalization rate of about 6 percent, an investor could expect a levered return of about 10 percent over the length of a 10-year hold, according to marketing materials.
A Cushman & Wakefield team of Doug Harmon, Adam Spies, Kevin Donner, Gary Gabriel and David Bernhaut is marketing the property. The brokers, who declined to comment, earlier this year sold another one of LeFrak’s Jersey City buildings to iStar for $170 million.