Newmark Grubb Knight Frank (NGKF) has been tapped to reposition Three Gateway Center in Newark, a 579,000 s/f Class A office tower owned by Tahl Propp Equities.
The brokerage announced today (Monday) that a team from its Rutherford, NJ, office, along with William Cohen in New York, have been tasked with repositioning, marketing and re-leasing the 19-story tower as long-time tenant Prudential prepares to move out.
Prudential – an original tenant of the Gateway complex – won a $200 million tax incentive to build a new headquarters building in downtown Newark. Its net lease runs through December 2014 when it will leave the tower.
Part of the four-tower Gateway complex, Three Gateway Center has a cafeteria, fitness center, daycare center, conference center, parking and rooftop helipad.
The office is adjoined via skyway to Newark Penn Station, which connects to neighboring New York Penn Station as well as to regional train service. The property also offers full-building signage and a sizable space opportunity.
Tahl Propp Equities is planning a major capital improvement program following Prudential’s departure that will include redesigned lobbies, new elevator landings and bathrooms on the 27,000 s/f floors, and upgrades to all the building’s systems.
“This location also is ideal for New York-based corporations looking to take advantage of lesser cost alternatives to Manhattan,” said Tim Greiner, who is teaming up with David Simson, Hope Brodsky and Harrison Russell, all of NGKF’s Rutherford, N.J. office on the assignment.
“The area is a dynamic example of revitalization, offers plenty of amenities for employees, and is a quick 12-minute train ride from midtown Manhattan,” he added.
The building is across the street from the Prudential Center arena that hosts professional and collegiate sporting events, family shows, concerts and other special events. The area is also home to the New Jersey Performing Arts Center, The Newark Symphony and Riverfront Stadium.
Tenants can apply for several relocation incentives from the State of New Jersey, including transit hub tax credits to remain in Newark, N.J.
“The new Grow NJ Incentive legislation presents similar incentive opportunities for prospective new tenants at Three Gateway Center,” said. Simson, vice chairman and COO of NGKF’s New Jersey operations. “For firms relocating from outside of New Jersey, the cost savings are extraordinary.”
Rodney Propp, chairman of Tahl Propp Equities, added, “At the conclusion of our capital improvement program, Three Gateway will be the crown jewel of Newark, with state-of-the-art design and systems that will rival any new construction on the east coast.”