Spotlight On Newark: Real Estate Community is Bullish on Booker & Newark

New Jersey Business, Aug 2007 by Birritteri, Anthony

The real estate community's interest in commercial development in the City of Newark has been fueled by the opening of the New Jersey Performing Arts Center (NJPAC) 10 years ago, Newark's dominance as the transportation hub of the state, its proximity to New York City (just 15 minutes by train), and its more affordable office space when compared with Manhattan. That said, it is the one-year-old administration of Mayor Cory Booker that is the new deal closer, so to speak, in enticing developers from around the country to seriously consider the state's largest city as a strong investment opportunity.

As Lawrence Goldman, president of NJPAC, explains, "When we began to solicit proposals from private firms for the planned development of our existing eight acres, the mayor was just coming into office. We received responses from developers all over the country who, in my judgment, would not have been interested in Newark if not for the excitement and the promise of the new administration."

According to Robert Martie, principal, Heritage Capital Group, "The mayor's reputation and personality and early improvements in the way Newark is being run are instilling a new level of confidence here. Business people are recognizing that Newark has a political machine in place that has its priorities accurately identified."

"Booker has assembled a highly professional team, particularly in the real estate area, headed by Stefan Pryor, deputy mayor of economic development, and Toni Griffin, director of community development," says Marc Berson, chair-man of The Fidelco Group and Newark Beth Israel Medical Center and owner of Bears & Eagles River-front Stadium. "Things are beginning now. There's a certain level of thoughtfulness, quality of thinking and willingness by the administration to aggressively go out and communicate with the business and real estate communities."

Berson agrees that major projects in Newark have occurred under the 20-year administration of Sharpe James (i.e., NJPAC, the Bears & Eagles Riverfront Stadium, the light rail line and the construction of the Devils Arena). "It takes a long time to create development," he says, "but it is clear to me that this new administration is different, communicative and highly professional and interested in good development. That all sets the right tone."

Arts, Entertainment & Sports

Many people say that the tone for Newark was set 10 years ago with the opening of NJPAC, with its 2,750-seat Prudential Hall and 514-seat Victoria Theater. As it sets the stage for its official 10th anniversary celebration in October, the center is planning to expand and develop an existing eight acres across from and adjacent to its theaters. According to Goldman, the $100-million to $115-million plan will include a high-rise development that will consist of 250 luxury housing units, 30,000 square feet of retail space and parking. Approximately 20 percent of the residential component will be artists' housing. Goldman says the apartment building will be the first new market-rate apartment complex in downtown Newark in 45 years.

Goldman envisions the project creating a self-contained Theater Square, similar to Rome's Piazza Navona, Paris' Places de Vosges or New York's Rockefeller Center. "We want to bring it to life with cafes, restaurants, art galleries, bookstores and other retail," he says.

In the future, NJPAC also plans an 80-foot wide theater arts bridge that would connect the center with the city's planned Joseph G. Minish Passaic River Waterfront Park, a $75-million development stretching from Bridge Street in the north, down to the Ironbound section in the south.

Asked what role NJPAC has played in Newark's renaissance, Goldman says, "I do believe in my heart that what we have done, most of all, is give this city a huge psychological lift. Something major and ambitious, which a lot of people thought could not possibly succeed, has happened beyond anyone's expectations."

Providing the next spark in the city, and hoping to prove its naysayers wrong, is the $375-million, 850,000 square-foot Prudential Center, home of the New Jersey Devils hockey team, which is scheduled to open on October 26 with consecutive performances by New Jersey's own Bon Jovi.

Expected to ignite a wave of downtown expansion in the city, the arena will have a seating capacity of: 17,600 for hockey games; 18,500 for basketball; and 19,500 for concerts. It will feature 76 luxury suites, 2,330 club seats, a 4,800 square-foot, state-of-the-art exterior LED screen, a restaurant overlooking the event floor and an array of fan amenities. The exterior has been designed by Morris Adjmi Architects and the interior by HOK Sport. Gilbane Building Company is the construction manager.

The arena will be managed by Anschutz Entertainment Group (AEG) New York/New Jersey, which is headed by Nick Sakiewicz. It is owned by Jeffrey Vanderbeek, owner of the Devils and head of Devils Renaissance Development.

According to Ted Zangari, partner at the Newark-based law firm of Sills Cummis Epstein & Gross, the fact that AEG is the manager and promoter for all non-hockey events is "huge for the city."