LeFrak looks to sell another Jersey City office building

Newport Centre developer sold another waterfront property nearby earlier this year

TRD TRI-STATE /
Jul.July 09, 2019 05:00 PM
 Newport Centre 4 at 545 Washington Boulevard and Richard LeFrak (Credit: Google Maps and Getty Images)

Newport Centre 4 at 545 Washington Boulevard and Richard LeFrak (Credit: Google Maps and Getty Images)

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.


Related Articles

arrow_forward_ios
Mack-Cali sues Jersey City over new food truck zone ordinance

Mack-Cali sues Jersey City over new food truck zone ordinance

Details emerge on Toys ‘R’ Us HQ sale in Wayne, iStar sets Asbury Park hotel opening date & more North Jersey real estate news

Details emerge on Toys ‘R’ Us HQ sale in Wayne, iStar sets Asbury Park hotel opening date & more North Jersey real estate news

From Left to Right: Mack-Cali dismisses Bow Street settlement, Triple Five pushes back American Dream opening date, developers launch leasing at One Harrison, Pennrose breaks ground at former WWII camp site

Mack-Cali ends settlement talks with activist investor, American Dream opening day delayed again and more North Jersey real estate news

Waterfront home closes in priciest sale of the month for Hampton Bays

Waterfront home closes in priciest sale of the month for Hampton Bays

Hamptons houses land on list of century’s ‘most notable artist homes’

Hamptons houses land on list of century’s ‘most notable artist homes’

Southampton home ‘The Beachmont’ listed

Southampton home ‘The Beachmont’ listed

Shelter Island sees ‘solid’ 8 months of property sales, report says

Shelter Island sees ‘solid’ 8 months of property sales, report says

Historic New Suffolk home built by whaling captain hits the market

Historic New Suffolk home built by whaling captain hits the market

arrow_forward_ios