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Thursday, 28 February 2019

Venture Offers Newark, N.J., Office Building for Sale

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Commercial Real Estate Direct Staff Report

A venture of Heritage Capital Group and Dr. Peters Group is offering for sale the 294,000-square-foot office building at 550 Broad St. in downtown Newark, N.J.

It has hired NKF Capital Markets to market the property to prospective investors, who will submit bids at an online auction on the RealInsight Marketplace platform on April 5 and 6.

Heritage, a Ridgewood, N.J. real estate investor, acquired the building in 2001 for $23.5 million when it was 50 percent leased. Dr. Peters, a Dortmund, Germany, investment manager, bought an 80 percent interest in the building in 2005 for $42.6 million when it was about 90 percent leased. That valued the 18-story property at $53.3 million.

The venture invested $1.1 million in 2016 on renovations to the property, which is now about 50 percent leased to tenants that include the Atlantic Federal Credit Union and Wells Fargo Bank. It is a half-mile from Newark Penn Station, a major commuter-rail and bus hub, and the Gateway Center office complex.

The property sits in a federal opportunity zone, which provides potential investors tax incentives.

Comments? E-mail Tim Casey or call him at (267) 397-3347.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Newark
  • States: New Jersey
  • Sector: Office
  • Subject: Property Offerings (OFF)
  • Private: No
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