SHIFT Capital, Hanini Group and CoInvestment Partners on Thursday said they have joined together to acquire three buildings integral to Newark’s growing Central Business District.
The $80 million portfolio consists of two office towers totaling over 816,000 square feet at 707 Broad St. and 153 Halsey St. and an adjacent 900-space parking garage located at 261 University Ave.
The two office buildings are steeped in Newark heritage and are central to Newark’s economic, social and cultural future. Intersecting with the city’s top tech companies, research universities and civic organizations, the office towers are positioned to be the home for businesses and entrepreneurs seeking to build on Newark’s rich history of innovation and civic engagement.
The trio plans to invest approximately $70 million in environmental and wellness building upgrades at each location that will help create jobs and drive new businesses to the main corridors on Broad and Halsey.
Additionally, the partners plan to reactivate the street-level storefronts with community-focused retailers that further invigorate the commercial corridor and serve as destination and amenity access points for the neighborhood.
“Hanini Group has been investing in and with the Newark community for over a decade,” said Samer Hanini, managing partner of Hanini Group. “Newark is a city born of innovation poised to welcome companies that will launch the next generation of entrepreneurs. Our investments at Broad, Halsey and University open new doors at the intersection of technology and community, and strengthen our neighborhood commitments by creating untapped opportunities to activate these spaces for our neighbors, add jobs and boost the vibrancy of the streetscapes.”
The unique partnership between SHIFT, Hanini Group, and CoInvestment Partners is built on a diverse team that reflects the community it serves and that is united on a purpose to best serve the neighborhood. It combines SHIFT’s equitable development and creative placemaking tools from its Next Gen Impact Platform, Hanini Group’s decadeslong Newark development expertise and impact investment experience from CoInvestment Partners.
“By deploying our Next Gen Impact Platform with a local emerging developer, like Hanini Group, we are able to leverage our tools and expertise in equitable development between teams to best serve communities,” said Brian Murray, SHIFT Capital’s CEO. “The power of our investment in Newark comes from our symbiotic partnerships and united dedication to delivering for the community.”
“In a post COVID-office environment, these properties combine the accessibility to New York and talent-rich neighborhoods of New Jersey with a spirit of Newark’s rebirth,” said Piyush Bhardwaj of CoInvestment Partners. “We believe that our acquisition will provide the city with another set of world-class buildings that blends Newark’s history with its future in a way that will continue to launch it forward. Having been a resident of Newark, it is satisfying to see the city conform towards its potential.”
Development on 707 Broad St. and 153 Halsey St. is scheduled to begin early next year, which will include activating the rooftop at 707 Broad, upgrading the systems to cater to a post-COVID environment and renovating almost all the spaces throughout the buildings.