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

New Jersey Business, Aug 2007 by Birritteri, Anthony

According to Andrew Berry, managing partner at the law firm, McCarter & English anticipates undergoing some renovations at its office. The firm does have options for more space, but, at press-time, has no plans to exercise them. In 2005, the firm was committed to relocating its offices to the proposed $400-million Newark River Front Center on seven acres near the Passaic River. This Matrix Development project is on hold, however, due to permitting delays. Plans for the site include 430,000 square feet of Class A office space in a 14-story tower; 55 residential units in four towers; retail space; and, potentially, a 150-room hotel.

On purchasing 4 Gateway Center along with 570 Broad Street (a 200,000 square-foot, 14-story Class A office tower, which underwent a $5-million renovation in 2005), Ivy Equities CEO Anthony P. DiTommaso, Jr., says, "Newark's enviable single-digit Class A vacancy rates, strategic location and outstanding transportation infrastructure make this an ideal time to invest in the city. We look forward to playing a leadership role in Newark's continued renaissance."

Discussing Cory Booker, he tells New Jersey Business, "The mayor has had an immediate and positive influence on Newark from our industry's point of view. Market activity and interest has already picked up. His recent trip to the Las Vegas International Council of Shopping Centers (ICSC) conference to personally encourage large retail corporations to come to Newark, is a great example of him 'walking the walk.' He is capable and willing to make the personal effort to encourage real and positive change in the city."

Further north in Newark's booming North Broad Street district, and across from the Bears & Eagle's Riverfront Stadium, sits the renovated 1 Washington Park, owned by The Fidelco Group. Consisting of 405,000 square feet in 17 stories, Marc Berson, Fidelco chair-man, says some 35,000 square feet is still available. Lease rates are in the area of $24.50 per square foot.

Last year, New Jersey Business reported that Fidelco was making approximately $20 million in up-grades to the building. Berson says that figure has somewhat changed since Rutgers University has purchased 11 stories of the building for its new business school (see next section on higher education for more information). Fidelco now owns six stories within the complex.

The university is planning a new entrance and addition to the south side of the building. Meanwhile, Fidelco has recently opened a new pavilion and entrance on the north side, with general contracting work done by McGowan Builders, Inc., North Bergen.

A positive sign for 1 Washington Park and for all of Newark, was the relocation to the building of Audible., Inc., a Wayne-based company with 170 employees.

Fidelco has now contracted to buy 494 Broad Street, a 100,000 square-foot building, formerly owned by IDT. Berson plans a restaurant on the first floor of this office facility.

Other completed or announced office deals and renovations in the city include: The Rockefeller Group Development Corporation and Edison Properties' joint plan for a build-to-suit 22-story 350,000 square-foot office tower at 50 Commerce Street, to be built adjacent to Penn Station; and the purchase of 18 Washington Place, a four-story 25,000 square-foot building by UNITE HERE, a major labor organization relocating from New York.