Three Gateway Center in Newark — Courtesy: JLL
By Joshua Burd
Three Gateway Center, one of four buildings in Newark’s revamped Gateway complex and the home of more than 500,000 square feet of office space, is on the market for sale.
Brokers with JLL are representing the would-be seller of the 19-story tower, at 94-110 Mulberry St., where current ownership has completed more than $28.9 million in enhancements since 2017. That includes $9.8 million in common area and amenity upgrades, which spurred leasing and grew occupancy from 57 to 94.5 percent.
Notably, Three Gateway is the lone property in the four-building, 2.3 million-square-foot complex that is not owned by Onyx Equities and its investment partners, which acquired Gateway One, Two and Four in late 2018. The group subsequently launched a massive overhaul of the buildings and the complex’s signature concourse, creating a reimagined, 100,000-square-foot dining and retail hub that is now coming online.
Three Gateway, which comprises 523,026 square feet, is projected to sell for around $100 million.
“The Gateway Complex is in the finishing stages of a generational transformation that has reimagined the access and overall employee/visitor experience featuring seven new eateries, cafes, entertainment, fitness and service options,” JLL wrote in its offering materials. “The cost of the improvements exceeded ($50 million) and the results have translated to record-setting rents at the complex. In addition, Newark Penn Station is also in the beginning stages of its capital program which will see an investment of over ($190 million) over the course of a five-year project.”
Current tenants include Prudential Financial, the General Services Administration and HelloFresh, along with law firms Walsh Pizzi and Tanenbaum Keale, JLL wrote. The property, meantime, is a block from the Prudential Center.
JLL’s Jeremy Neuer, Jose Cruz and Mark Belenky lead the team that is marketing the building, with support from Michael Klein of the firm’s debt and equity team.
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