Rugby Realty Makes its Third 2014 Office Acquisition in Northern N.J.
citybizlist – December 11, 2014
Rugby Realty Co., Inc. announced it has acquired Three Gateway Center in Newark, N.J. 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,” Ades added. “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 Healthcare and Prudential Insurance Company of America.
“The real estate market right now is catering exactly to what we do well, which is providing us with opportunities to acquire high quality yet non-stabilized buildings. With the right investment to improve infrastructure we can lease up very quickly.”
Based in New Rochelle, N.Y., Rugby Realty owns and manages approximately eight million square feet of commercial property and specializes in identifying undervalued properties and realizing their maximum value through skillfully conceived development and sound management.
About Rugby Realty Co. Inc.
Rugby Realty Co., Inc., is a preeminent real estate company formed in 1980 with corporate headquarters in New Rochelle, New York. Rugby has been involved in all aspects of commercial real estate, including the purchase, development and management of a broad range of real estate holdings. With properties in New York, New Jersey, Pennsylvania, Connecticut, and Florida, Rugby Realty has taken a leadership role in redeveloping long abandoned but architecturally significant buildings. The principals of Rugby have successfully completed more than five million square feet of redevelopment.View the story here