In one the largest single sales of mixed-use properties along on the New Jersey waterfront, Federal Realty has acquired 37 mixed-use buildings in Hoboken, New Jersey for $189.2 million.
The 158,000 s/f portfolio includes and 123 apartments located along historic Washington Street and 14th Street, two of Hoboken’s main commercial thoroughfares.
The Trust acquired the properties through a newly formed joint venture in which the Trust owns 90 percent. Two additional buildings are expected to close in 2020.
Newmark Knight Frank (NKF) brokered the joint venture sale o a private owner.
Executive managing director Kevin Welsh and managing director Brian Schulz of NKF’s Capital Markets group represented the seller in the transaction, along with support from NKF Retail Managing Director Dean Tselepis.
The team was also responsible for procuring the buyer.
The acquisition provides an opportunity of unparalleled scale in one of the region’s most prominent urban lifestyle markets, according to NKF.
Concentrated primarily along Washington Street, Hoboken’s premier retail corridor, the portfolio includes 171,959 s/f of urban retail featuring a number of Hoboken’s leading brands including Sephora, Chipotle, Quality Greens, Honeygrow and CVS.
“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+ billion Hudson Yards development,” said Donald Wood, president and CEO 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.”
“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,” said Welsh.
“The partnership’s unique combination of local expertise and national retailer relationships will have a transformative impact on Hoboken for years to come.”