Rugby Realty Acquires Three Gateway Center in Newark
By Steve Lubetkin
GlobeSt.com – December 10, 2014
NEWARK, NJ—Rugby Realty Co., Inc. has acquired Three Gateway Center in Newark, NJ, from Tahl Propp Equities. Financial terms were not disclosed.
The 579,000-square-foot, 19-story office tower is part of the four-tower Gateway indoor complex that features such amenities as an in-building, 15,000-square-foot full service café, a New York Sports Club fitness center, Hilton Hotel, Starbucks, daycare facility, conference centers, plus private executive and covered parking. It is nearby to the Prudential Center, the New Jersey Performing Arts Center, a new Dinosaur BBQ restaurant and a soon-to-be-built Whole Foods supermarket.
“This was a rare opportunity to purchase an iconic building in Newark,” says Maurice Ades, Rugby Realty’s principal and managing director. “The tower also offers tenants New York City skyline views, signage at the top of the building, and the benefit of state tax incentives that can cut rent expenses in half.”
Newark uniquely qualifies as an Urban Transit Hub Municipality in the Grow NJ assistance 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 minutes, as well as towns across the state of New Jersey and cities along the eastern seaboard via Amtrak.
Rugby Realty will be investing $20 million in the building, including the construction of a new lobby, café, elevators and common areas.
The top 10 floors are available, offering 360,000 square feet 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 headquarters, and will continue to occupy approximately 40 percent 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 acquisition 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-square-foot class A office building in Secaucus. In January, it purchased City View Corporate Center, a 135,418-square-foot class A office property in Lyndhurst. It also owns a 300,000-square-foot distribution center in nearby Teterboro.
“I couldn’t be happier with our decision to invest in northern New Jersey. I believe the future is very bright there, and for Newark in particular,” says Ades. “I have been working 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 acquiring 33 buildings in New York, Connecticut, Georgia, Florida, Pennsylvania and New Jersey. At the same time, Rugby Realty has signed large leases with major corporations such as Amazon, United Health Care and Prudential. “The real estate market right now is catering exactly to what we do well, which is providing us with opportunites to acquire high quality yet non-stabilized buildings,” says Ades. “With the right investment to improve infrastrucure, we can lease up very quickly.”View the story here