Flight to quality: How about a flight to trophy? Or how about an opportunity to get in on the Gateway Complex in Newark, which has seen rapidly rising rents to match the rapidly rising interest in the rapidly improving property?
That’s the opportunity that appears to be presenting itself at Three Gateway Center, according to the team at JLL, which is marketing the 19-story, 523,026-square-foot building at 94-110 Mulberry St. that makes up one-quarter of the Gateway Complex.
The building is expected to sell for approximately $100 million.
And, while it would be logical to assume Onyx Equities, owner of the other three towers, would want to complete its set, that’s not a given — seemingly opening the door for another investor.
“This is an amazing opportunity for an investor to enjoy the significant leasing activity and rising rents that have resulted from Onyx’s generational improvements,” JLL’s Jeremy Neuer said.
“The Gateway Complex is achieving the highest rents in its history, taking advantage of the ‘flight to trophy’ trend that is occurring both locally and nationally.”
That flight has been particularly strong in Newark at Gateway.
The current owners of Three Gateway have made nearly $29 million in enhancements since 2017, which has increased occupancy to well over 90%.
Then there are the efforts of Onyx Equities, which purchased the other three buildings at the end of 2018.
Onyx has made significant improvements to the complex, including the Jewel Box, a sharp two-story entryway that now better opens the facility toward Penn Station. That entrance leads to a 100,000-square-foot retail and dining overhaul.
“The new restaurants set to open this spring will only add to the amazing tenant experience already in place,” Neuer said.
Then there’s this: Newark Penn Station is in the opening stages of a five-year, $190 million remodel that only figures to improve the area — an area that is within walking distance to both the Ironbound section of Newark and the Prudential Center.
Jose Cruz, Mark Belenky and Neuer are leading the team at JLL that is marketing the building, with support from Michael Klein of the firm’s debt and equity team.
Onyx declined to comment about the property.
