A joint venture led by Federal Realty Investment Trust has acquired a 39-building, mixed-use portfolio in Hoboken, mostly along the Washington Street corridor. — Courtesy: Newmark Knight Frank
By Joshua Burd
A joint venture has acquired a 39-building, mixed-use portfolio in Hoboken, brokers with Newmark Knight Frank announced, in a deal reportedly valued at more than $200 million.
The real estate services firm said it represented a longtime private owner in the sale of the 278,879-square-foot portfolio, which represents one the largest single trades of mixed-use properties along the New Jersey waterfront, to a joint venture led by Federal Realty Investment Trust. The properties include 171,959 square feet of retail space and 129 residential units, mostly along Hoboken’s main thoroughfare of Washington Street, with NKF hailing the portfolio as “an opportunity of unparalleled scale in one of the region’s most prominent urban lifestyle markets.”
NKF Executive Managing Director Kevin Welsh and Managing Director Brian Schulz of the firm’s capital markets team completed the assignment, with support from NKF Retail Managing Director Dean Tselepis. The team was also responsible for procuring Federal Realty as the joint venture partner.
“We’re very bullish on Hoboken as it continues to mature and find favor among NYC commuters, especially given its proximity to the increasingly important West Side of Manhattan and the $25-plus billion Hudson Yards development,” said Donald Wood, CEO and president of Federal Realty Investment Trust. “This exciting joint venture creates a highly productive business development arm for us in Hudson County. We expect this portfolio to be just the beginning of a very successful long-term relationship.”
Terms were not disclosed, but a report by Commercial Observer said the portfolio traded for $203 million. According to NKF, tenants within the portfolio include Sephora, Chipotle, Quality Greens, Honeygrow and CVS.
“The seller was able to create significant value by building this remarkable portfolio over more than 30 years, providing Federal Realty with the opportunity to acquire unprecedented scale in one of the country’s premier lifestyle environments,” Welsh said. “The partnership’s unique combination of local expertise and national retailer relationships will have a transformative impact on Hoboken for years to come.”