CBRE brokers $174.5 million sale of 973,000 s/f 80 park plaza in newark
Newark, NJ — CBRE Group, Inc. announced that Jeffrey Dunne, Kevin Welsh and Brian Schulz of CBRE Institutional Properties, in collaboration with Dudley Ryan of CBRE’s Saddle Brook office, represented Columbia Property Trust in the $174.5 million sale of 80 Park Plaza, the corporate headquarters for Public Service Enterprise Group (“PSEG”) in Newark. The team was also responsible for procuring the buyer, a joint venture between New York-based Nightingale Properties and private real estate investor Simon Glick.
80 Park Plaza is a 973,000 s/f office complex that includes an iconic 26-story office tower and a three story plaza building. Serving as the headquarters for PSEG since 1979, the property is currently 85% net leased to PSEG for more than 14 years, providing stable credit cash flow with annual increases. The property also offers additional upside through the leasing of the top five floors of the tower.
80 Park Plaza is situated at the center of Newark’s urbanization, just two blocks from Newark Penn Station with numerous rail, PATH, light rail and bus options providing access to Manhattan and Newark Liberty International Airport in less than 15 minutes. The property’s locational value is enhanced by Newark’s expanding 24/7 lifestyle environment with a growing number of national retailers (Whole Foods, Starbucks, Nike, Chipotle), more than 1,500 residential units that are planned or under construction, several new hotels within two blocks, and a dedicated base of corporate tenants (Prudential, Panasonic, Audible) and universities (Rutgers-Newark, NJIT, Seton Hall Law) that continue to drive demand in the city.
Dunne said: “The property’s long-term occupancy with PSEG provides stable cash flow with significant potential upside from the lease up of the top five floors. Nightingale and Glick plan to implement a new capital improvement program to enhance the lobby and amenities that may facilitate lease up and augment the net operating income.”