12-26-14

R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news

ISSUE HIGHLIGHTS Volume 26 Issue 24 Dec. 26, 2014 - Jan. 15, 2015

Baumstein of Cushman & Wakefield serves as leasing agent Rugby Realty acquires 579,000 s/f office tower, plans to invest $20 million

Annual Review Section C

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to purchase an iconic building in Newark,” said Maurice Ades , Rugby Realty’s prin- cipal and managing director. “The tower also offers tenants New York City skyline views, signage at the top of the build- ing, and the benefit of state tax incentives that can cut rent expenses in half.” Newark uniquely qualifies as an Urban Transit Hub Munici- pality in the Grow NJ assis- tance program, which provides grants and other incentives for job creation and retention. The building is adjoined via skyway to Newark Penn Station, which connects to neighboring New York Penn Station in 10 min- utes, as well as towns across the state of New Jersey and cit- ies along the eastern seaboard via Amtrak. Rugby Realty will be invest- ing $20 million in the building, including the construction of a new lobby, café, elevators and common areas. The top 10 floors are avail- able, offering 360,000 s/f of

contiguous space, including a penthouse floor with a 20-foot- high ceiling. Main tenant Prudential is moving some of its operations to its new downtown Newark headquar- ters, and will continue to oc- cupy approximately 40% of the building on a long-term lease. Cushman & Wakefield ’s Richard Baumstein is leasing agent for the property. The purchase marks Rugby Realty’s third office acquisi- tion in New Jersey in 12 months and is part of an ongoing effort to grow its portfolio in the New York region. In July, it acquired 300 Lightning Way, a seven- story, 303,000 s/f class A office building in Secaucus. In Janu- ary, it purchased City View Corporate Center, a 135,418 s/f class A office property in Lyndhurst. It also owns a 300,000 s/f distribution center in nearby Teterboro. “I couldn’t be happier with our decision to invest in north- ern New Jersey. I believe the

future is very bright there, and for Newark in particular,” Ades said. “I have been work- ing full-time in New Jersey for the last 12 months and have found it to be a high- level place to transact with a real estate community that is extremely professional.” Ades and his partners have been on a transaction spree over the last 36 months ac- quiring 33 buildings in New York, Connecticut, Georgia, Florida, Pennsylvania and New Jersey. At the same time, Rugby Realty has signed large leases with major cor- porations such as Amazon, United Health Care and Pru- dential Insurance Company of America. “The real estate market right now is catering exactly to what we do well, which is providing us with opportu- nites to acquire high quality yet non-stabilized buildings. With the right investment to improve infrastrucure, we can lease up very quickly.” n

EWARK, NJ — Rug- by Realty Co., Inc. announced it has ac-

quired Three G a t e w a y C e n t e r i n Newark from Tahl Propp E q u i t i e s . F i n a n c i a l terms were n o t d i s - closed.

Contributing Columnist

Maurice Ades

The 579,000 s/f, 19 story office tower is part of the four-tower Gateway indoor complex that features such amenities as an in-building, 15,000 s/f full service café, a New York Sports Club fitness center, Hilton Hotel, Star- bucks, daycare facility, confer- ence centers, plus private ex- ecutive and covered parking. It is nearby to the Prudential Center, the New Jersey Per- forming Arts Center, a new Dinosaur BBQ restaurant and a soon-to-be-built Whole Foods supermarket. “This was a rare opportunity

Mark Scott

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SEBCO Laundry Systems celebrates 44 years of service

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For speaking and sponsorship information, please contact: Linda Christman at 781-871-3456 or lchristman@marejour nal.com Upcoming Conference Thurs., Feb. 12, 2015 NJ Industrial Real Estate / Development Summit

Lombardi of Marcus & Millichap handles $11.5 million Ocean County NJ shopping center sale

WHITING, NJ — Marcus & Millichap announced the sale of Whiting Town Center, an approximately 113,000 s/f grocery-anchored town center. The $11.5 million sales price equates to $101 psf. Whiting Town Center includes pad

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Shopping Centers........................ 3-13A Owners, Developers &Managers.Section B Green Buildings......................... 13-18A

Upcoming Spotlight January 16, 2015 2015 FORECAST

Whiting Town Center

sites, in-line retail space and medical office tenants. The center is anchored by Sav-a- Lot, Wells Fargo and Dollar General. Michael Lombardi, vice pres- ident investments, represented

the seller, a New York City- based owner. The acquisition completes a 1031 exchange for the buyer, a Staten Island- based owner. “More than 30 percent of the center is leased to credit-rated

tenants and many of the other tenants have been established in this location for more than 10 years, including some medi- cal office tenants with well- established practices,” said Lombardi. n

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