An investment group has acquired two Newark office buildings from Hartz Mountain for $80 million and secured $113.5 million in financing for the acquisition and repositioning of the property.
JLL Capital Markets and Progress Capital arranged the financing for the acquisition of the Broad & Halsey Street Portfolio which consists of 707 Broad St. and 153 Halsey St., totaling more than 816,000 s/fof office, and a 901-space parking garage at 261 University Place.
A joint venture of SHIFT Capital, Hanini Group and CoInvestment Partners acquire the properties and plan environmental and wellness upgrades to help draw new businesses to the corridors, along with reactivated street-level storefronts with community-focused retailers.
“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.”
The firms said work at 707 Broad and 153 Halsey is scheduled to begin early next year. That 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.
“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,” said CoInvestment Partners’ Piyush Bhardwaj Bhardwaj. “Having been a resident of Newark, it is satisfying to see the city conform towards its potential.”
Originally built in the 1920’s, 153 Halsey St. and 707 Broad St. are leased on a long-term basis to The State of New Jersey, which houses more than 3,500 employees across 35 departments on site. The properties are positioned in the heart of the multi-tower Prudential Insurance Campus in Newark’s Central Business District.
The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Michael Klein and Jon Mikula and Director Matthew Pizzolato alongside Partner Brad Domenico from Progress Capital.
“The sponsor developed a thoughtful business plan designed to create tremendous long-term value for Newark and build on its rich history of innovation and civic engagement,” Pizzolato said. “ACORE Capital recognized the value created by the team and stepped up to offer a high leverage, structured debt solution that will allow the sponsor to execute their business plan.”