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”) (NYSE: PEG) in Newark, New Jersey. 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-square-foot 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 percent 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.
Mr. Dunne commented: “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.”
CBRE Institutional Properties specializes in the sale of investment properties in the suburban markets surrounding New York City, and also around the United States. CBRE Institutional Properties services a prestigious client base of institutions, corporations, private investors, developers and REITs and has closed over $9 billion in property sales in all property types over the last five years.
CBRE Institutional Properties has a number of attractive investment opportunities currently on the market including: Two Riverfront Plaza, a 337,500-square-foot trophy office building in Newark, New Jersey that is net leased to Panasonic N.A.; 175 Park Avenue, the world-class 270,000-square-foot global headquarters of Realogy in Madison, New Jersey; 500 Plaza Drive, a recently renovated 462,000-square-foot property that is 99 percent leased and serves as the world headquarters for The Children’s Place and Quest Diagnostics within a mixed-use environment in Secaucus, New Jersey; and 300 Harmon Meadow, a 125,000-square-foot multi-tenant office building that is home to the corporate headquarters of Vitamin Shoppe in Secaucus, New Jersey.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
