Small company's commitment yeilds big results in Newark.
Heritage Management completed a multi-million dollar renovation and repositioning at 550 Broad Street in 2001.
"The 291,000 s/f office tower, with its visible signage east from Route 21 and unobstructed view of the Manhattan skyline, quickly became a distinct symbol of the city's downtown commercial district renaissance," noted Jeffrey Greenberg, a principal with Heritage Management.
"The response from the business, political and commercial real estate communities was terrific, and we knew that we were tapping into something with great promise."
In recognition of the firm's achievement at 550 Broad Street, the New Jersey Building Owners and Managers Association (BOMA) named the property as "The Office Building of the Year" in 2001. Additionally, it won the 2001 "New Good Neighbor" award from the New Jersey Business and Industry Association (NJBIA).
In late 2003, Heritage Management strengthened its commitment to Newark with the purchase of 570 Broad Street. The 200,000 s/f, 14-story building had sat vacant for seven years. The firm launched a $5 million renovation there in early 2004, resulting in one of the city's most modern, Class A office properties.
On the heels of completing the 570 Broad Street renovation in early 2005, Heritage entered an unprecedented partnership at 550 Broad Street. With that property's value nearly doubled from its initial, $23.5 million purchase price, Heritage aligned itself with The Dr. Peters Group, selling 80% of its interest to the German investment entity, retaining 20% ownership, and maintaining its position as executive operating partner and on-site manager for the building.
"This joint venture represented the first foreign investment in the Newark commercial office market," Greenberg noted. "It marked a clear milestone in the progress being made by the development community and drew significant attention to the city's growing appeal."
By the summer of 2006, 550 Broad Street had reached 90% occupancy. At 570 Broad Street--which recently had matched 550 Broad Street by winning BOMA's "The Office Building of the Year" award and NJBIA's "New Good Neighbor" award--six tenants had signed long-term commitments, with many relocating to the building from outside of Newark. And Heritage Management again made a strategic move, selling 570 Broad Street to Ivy Equities.
"The sale has enabled us to pursue other opportunities in Newark," Greenberg said. "It also strengthens institutional presence in the city, which we recognize as an important factor in its continued revitalization."
What's next for Heritage Management in Newark? According to Greenberg, the firm is always looking for new projects in the city. "550 and 570 Broad Street are stellar examples of what is possible," he said. "We are incredibly proud of our company's accomplishments here. We have created two of the finest Class A properties in the region, increased the city's tenant base, and brought new investors to the market.
"Our achievements and the overall advancement of the Newark office market complements the current surge in new residential construction; enhancements to the city's already outstanding mass transit infrastructure; and its growing reputation as a rich center for sports, recreation and culture," he added. "In short, Newark is an amazing city with unlimited potential. It is gratifying to be such an integral part of its progress."
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|Title Annotation:||NEW JERSEY|
|Publication:||Real Estate Weekly|
|Date:||Sep 20, 2006|
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