Lefrak Organization enters energetic NJ market

Real Estate Weekly, April 5, 2000

Formerly dilapidated rail yards populated with stray dogs and empty warehouses, the 600-acre $10-billion multi-use Newport waterfront community on the West Bank of the Hudson River now is being recognized as one of the premier destinations for businesses and residents.

Proof of that success was seen recently as Jersey City Mayor Bret Schundler and civic and business leaders joined Lefrak Organization executives in welcoming PaineWebber, U.S. Trust and Cigna as tenants to the new 567,318 square-foot, 14-story state-of-the-art Paine Webber Building on Washington Boulevard.

The Lefrak Organization also announced the topping out of the 800,000 square-foot Newport Office Center IV - which has been named the Insurance Services Office Building (I.S.O. Building), the facility's main tenant. The insurance information firm, which will consolidate all its regional offices, move out of Manhattan's World Trade Center, and establish its national headquarters at Newport, leased 395,000 square feet and will occupy the top 10 floors of the 22-story office tower.

The Lefrak Organization also revealed that Automated Securities Clearance, a division of SunCard Data Systems, and U.S. Trust Corporation each signed leases for 40,000 square feet at the ISO Building, bringing the total occupancy of the facility to 60 percent. The building is expected to be completed by Fall 2000.

"The message communicated with the official opening of the PaineWebber Building and the topping out of Newport Office Center IV is clear: Jersey City's waterfront is a thriving center for business," said Jersey City Mayor Bret Schundler. "The combination of Newport's state-of-the-art office buildings and Jersey City's economic incentives are sure to encourage even more businesses to relocate to our side of the Hudson River."

The PaineWebber Building, which was fully leased nine months after its May 1998 groundbreaking, is the first speculative office building developed on the waterfront in more than a decade.

"Being privileged to welcome three celebrated companies to Newport speaks volumes about Newport's attractiveness and bright future," said Richard LeFrak, president of the Lefrak Organization. "Newport is no longer a mere extension of New York City but a primary destination for corporations and residents."

PaineWebber, U.S. Trust and Cigna join such prominent firms such as Brown Brothers Harriman, First Chicago Trust Company, Federal Deposit Insurance Corporation, and USA Networks as Newport corporate tenants.

The Lefrak Organization also plans to break ground on NOC V, a state-of- the-art 800,000 square-foot office tower, next month. Newport, a mixed-use community designed for residential and commercial use, is located directly across from Manhattan's World Financial Center. The community provides on site shopping, leisure amenities, and a waterfront esplanade for residents, office workers and visitors, and features panoramic views of the Manhattan skyline. The community is easily accessible by PATH, ferry, major highways, Newark Airport, and The Hudson/Bergen Light Rail Transit System - which will pass directly behind the PaineWebber and I.S.O. Buildings.

The architectural firm of John M. Lee/Michael Timchula designed the PaineWebber Building. The ISO Building was de signed by the architectural firm of Poskanzer/Skott.

Cushman & Wakefield is the exclusive leasing agent for both the PaineWebber and ISO Buildings.