Onyx Equities will reap about $440 million over 25 years from the Newark office lease NJ Transit signed, North Jersey reported.
The release of the 249-page lease revealed new details about the deal at 2 Gateway but omitted others, according to the publication’s analysis, so the exact dollar value remains unclear.
The $440 million figure represents only the base rent and escalations. Although other costs were missing, hiding the sheer value of the move, it is clear that the transit agency passed on less expensive options.
The deal requires expenditures by Onyx as well. The Paramus-based landlord, founded and led by John Saraceno Jr. and Jonathan Schultz, will make $52.9 million in construction improvements to the space, along with providing new HVAC units.
The deal expanded fissures in NJ transit’s inner circle, as Cedrick Fulton abruptly resigned as vice chair of the agency’s board in February. NorthJersey.com has also reported on minimal board involvement in the negotiations, and that discussions were held between Onyx leadership and NJ Transit officials before the bid for new office space went out.
Read more
Commercial
Tri-State
Onyx Equities inks Newark’s largest office lease in years
Residential
Tri-State
Onyx Equities to roll out 2 Ridgewood rental projects
Commercial
Tri-State
NJ Transit eyes new service to American Dream mall
According to the news outlet, some of the alternatives were up to $100 million cheaper for the agency, which has a $2.86 billion budget but has to close deficits starting at $120 million next year and reaching nearly $1 billion in 2026.
Its new home, the 18-story 2 Gateway, is about 832,000 square feet and dates to 1971. It is part of Gateway Center, a commercial complex built in the 1970s and 1980s just west of Newark Penn Station, which at the time was considered a blighted area. It was renovated in the 1990s.
— James Van Bramer