Newark: Real Estate, Development, News, & Politics

[newarkdevil1]

The paper had a map of the location of the top five mentioned projects but I am happy to see dranoff slowly moving forward as well as the Seton Hall project. I am extreemly dissapointed at the loss of the hotel projects and the fact the city has lost its vision of a convention center.

http://www.nj.com/news/index.ssf/200..._on_newar.html

[scrollhectic]

Posted by Mark Di Ionno/Star-Ledger Columnist February 10, 2009 9:06PM

Categories: Newark Live, Real-Time News

Developer Arthur Stern came to Newark 10 years ago, bought the two peaks of the skyline -- the National Newark Building (744 Broad St.) and the neighboring 1180 Raymond Boulevard, and restored them at costs of about $250 million.

He also purchased the Hahne's and Griffith buildings and another quarter-mile line of properties on the west side of Broad Street, facing Military Park.


Aristide Economopoulos/The Star-LedgerArthur Stern, CEO of Cogswell Realty Group, talks about the company's future in Newark real-estate.


The chief executive of Cogswell Realty had a vision of Newark as an emerald city, filled with architectural gems.

"We had a great emotional and financial investment in this city," Stern said today in a conference room at 744 Broad St., high above the Hahne's site.

"But now I'm doubtful of our future here."

After investing $250 million to bring two Newark landmark buildings back to life, and buying up acres of property to redevelop, Stern has found himself on the outside looking in when it comes to new plans for the downtown. The guy who took the first major risk has fallen out of favor.

On Monday night Mayor Cory Booker gave his annual State of the City speech. He spoke of three projects given the green light by the city, and described them as "a three-pointer of monumental proportions for our downtown."

The biggest of the three is a 300-unit luxury building, with retail on the bottom floors and parking for 700 cars, at Two Center Street, adjacent to the New Jersey Performing Art Center.

Stern's Hahne's project -- a village within a city, with 3,200 residential units and 200,020 square feet for retail -- was left on the cutting
room floor.

Why?

"I think they get enamored with the new guy in town," Stern said.

There are other realities. Like politics and the other insider's games. Stern is an outsider. A New Yorker. A Devils fan, but a New Yorker.

In other words, Stern has already served his "transformational" purpose.
"Transformational" is a word developers and community leaders use when they talk about new projects.

Hahne's has been talked about as a transformational project for almost 10 years. Not only in size, but in geography. In the city's master plan, this corridor was the critical culture-way to bring more Rutgers and NJIT students to the downtown and more young people to the city's new residential building.

Stern admits he doesn't have the financing lined up right now, but said he would when the economy improved. "We've already committed a few hundred million to the city," he said. "I think we were a pretty good risk."

Stefan Pryor, Newark's deputy mayor for economic development, said the city looked at a number of factors to help them decide.

"Project viability, financial strength and community benefit were the most important," he said, adding he believed Hahne's could get approved someday.

"If a project has transformational value, I think it will probably get built, eventually."

For Stern, that may be too far off to keep the plan afloat.

Stern went out of his way to say he didn't want to look like a sore loser.
"I don't want this to sound like sour grapes," he said repeatedly. "I congratulate Larry. He won." Lawrence Goldman is the chief executive officer of NJPAC.

But Stern's disappointment was clear, because he has invested in this city like few others.

He bought 744 Broad more than 10 years ago. "We closed the deal the same week NJPAC opened."

He bought 1180 Raymond Boulevard with six months.

Both were dilapidated, on the verge of being unrepairable.

The two buildings were Art Deco masterpieces, symbols of Newark's wealth, sophistication and style. In the 1970s they became symbols of Newark's descent. When Stern bought the buildings, 1180 Raymond had been vacant for 20 years and 744 Broad barely occupied.
He spent $55 million to bring 744 Broad back, and $200 million on 1180 Raymond.

Aristide Economopoulos/The Star-LedgerCogswell Realty Group had wanted to develop along Broad Street in Newark across from Military Park.

When they were done he put floodlights on the cleaned-up towers to make them glow at night, and posted two 50-foot flagpoles on the roof, from which American flags unfurl in the high-alt breeze.

There are now the tallest symbols of Newark's hopes.

Arthur Stern did that. The city seems to have forgotten that.
So on Monday night, as Cory Booker gave his State of the City address in Symphony Hall, the weathered theater of Newark's Victorian glory days, Arthur Stern was in the new entertainment palace, the Rock, watching a hockey game.

"We weren't invited," he said.

[scrollhectic]

So on Monday night, as Cory Booker gave his State of the City address in Symphony Hall, the weathered theater of Newark's Victorian glory days, Arthur Stern was in the new entertainment palace, the Rock, watching a hockey game.

"We weren't invited," he said.

I wonder if Miles Berger was invited. They should have given Stern that invitation ticket instead...

[Marv95]

No to stand up for city officials(because the majority of them are idiots who think downtown is fine just the way it is lol), but maybe if Cogswell torn down that entire strip instead of letting it decay for about a decade, located on the main drag of the city, we wouldn't be in this situation. You talk the talk but don't walk the walk. Those two other projects are one pace of getting financing sooner than this Broad Street project since it was first thought of.

And I'm not buying this 'outsider' bs. The guy developing NJPAC is from the Philly area.

[newarkdevil1]

I found this article interesting as there always seems to be a part of this discussion that is left out, the cost to do these renovations. Simply put, most of these developers rely on leverage that isn't available for any projects other than maybe Manhattan construction (and even that is coming to a halt). Mr. Stern is holding out for a government subsidy (like what Tucker has and Edison held out for) to build so that the numbers make sense in terms of his risk. I remember talking w/ someone at Edison that placed the cost per a square foot that would needed to be charged to make the numbers work at 65 dollars a square foot. If you work with that number and add the state of NJ's 25% office vacancy rate plus the fact that Newark office space at peak went for 25 dollars a square foot and you end up with vacant buildings.

I hate ranting about unions but it's no secret that it costs about 30-50% more to build something with shop labor and they now have a firm grip on downtown Newark. Put simply, what will happen is the developer turns to the state and says, " hey I need someone to fill that 40 dollar a square foot difference.". Then the politician, backed by unions, puts your money there to fill in the gap and buy votes. I don't care if your pro union or not, the simple fact of the matter is there are NO buildings built in NJ w/ shop labor that do not use public subsidies.

[scrollhectic]

No to stand up for city officials(because the majority of them are idiots who think downtown is fine just the way it is lol), but maybe if Cogswell torn down that entire strip instead of letting it decay for about a decade, located on the main drag of the city, we wouldn't be in this situation. You talk the talk but don't walk the walk. Those two other projects are one pace of getting financing sooner than this Broad Street project since it was first thought of.

And I'm not buying this 'outsider' bs. The guy developing NJPAC is from the Philly area.

Maybe if they were torn down, there'd be more of a sense of urgency to build up that area, but I somehow doubt that it would be that easy to tear down structures listed as "historical." I can be completely wrong, but my understanding is that Cogswell and Berger (who I believe also ownes the Hahnes and Griffith site) plan on tearing those buildings down as it is cost prohibitive to rehab them. But I think before that could be done, they have to ensure that they have a plan in place for redeveloping that area and not just creating unsightly parking lots (though Edison Properties would probably be all over that!)

Consider how long ago the Westinghouse building was torn down. There is still a mountain of debris on that site... why? I'm not sure. I know the land is contaminated and needs to be remediated, so perhaps keeping the debris on the land is part of the remediation process, but in my opinion, it looks worse now then it did before. I'm sure city officials don't want the same thing happening to that stretch of Broad Street (not that it looks so great right now, but perhaps they prefer vacant buildings to vacant lots...)

[scrollhectic]

by Gregory C. Washington/The Star-Ledger

Thursday February 12, 2009, 5:37 AM


The economy is supposed to be slumping. Depending on who you talk to, now is supposed to be a bad time to expend millions of dollars in a city that isn't a sure thing yet.

Apparently the people in the luxury residence business have not been talking to those folks. Richardson Lofts is on the way, 1180 Raymond Blvd. is quite full and soon there will be another option right on Broad Street.

Then again, when your target audience is used to paying more than $2,000 a month for a one-bedroom apartment, or $2,200 a month for a studio with a kitchenette on Wall Street, maybe it isn't hard to fill a building up. Especially when you offer more space than your Manhattan counterparts.

With this in mind, allow me to introduce you to the soon-to-be-built Packard Lofts, located at 1002-1008 Broad Street. East Kinney Street is the cross street, for those who follow the grid. For those who travel by landmarks, it's the white, three-story building down the street from Symphony Hall. It's also where Nathan's Famous hot dogs used to be.

And if you remember when the bulldogs were the mascot for Southside High School, it's the building that used to be a Buick dealership.

Now that we are all on the same page, let's plunge deeper into the city's latest high post-mixed-use residence. Currently the structure is two separate buildings, which will naturally be combined into 76,478 square feet of space.

You want more depth, don't you. Okay. We'll start on the ground floor.

The main entrance will be on Broad Street and the ground floor will house the lobby, as well as retail and commercial space. Anyone thinking about occupying the retail space will have the 7,152 square feet in the southwestern corner of the building available. That's the corner closest to the intersection of Broad Street and East Kinney Street.

An ideal occupant, at least in the eyes of the developers, is one that will cater to the residents who live above it, as well as the people who will work in the commercial space.

Now if you were thinking about claiming the 12,880 square feet of commercial space to possibly open another hot dog joint, or even sell alternative-fuel motor vehicles, forget it.

The U.S. General Services Administration, a branch of the federal government that provides, well, general service (feel free to look them up at www.gsa.gov ), is already lined up to move into the space. The men and women who support the operations of the federal district courts and the courthouse on Martin Luther King Jr. Blvd., will work there.

But the bell of this ball is the living space, housed on the second and third floors. A total of 56,446 square feet will be strategically spliced into 28 residential units, with an average of 1,150 square feet of living space per unit.

The plan is to sell them off as loft-style, live-work spaces with an open floor plan with bedroom enclosures. If executed, potential buyers will meet with the developer to discuss wall placement, colors, fixtures and whatever else isn't tied to the plumbing.

Most of the units will be one-bedroom designs. There may be four or five two-bedroom designs and even a couple with mezzanines, for those who want a private outdoor experience.

Residents who don't mind sharing the outdoors with their neighbors will have the chance on the roof of the building. Passive recreation is how some people would describe it. Food and drinks and anything else within the rules set by the developer will be allowed on the roof, assuming that
they get around to setting rules for the roof.

If the plan to sell the units holds, owners will enjoy a 30-year tax-abatement, sponsored by the city of Newark. A parking plan has not been finalized, but one of the partners in the project owns the lot next to the building and spaces may be made available to residents.

Hard hats are in the middle of selective demolition, removing everything that will not be used in Packard Lofts. The commercial space should be up and running by the summer. The rest of the building is scheduled to open at the end of the year.

All of this will cost $11.4 million. The developer ponied up $5.4 million and the believers at Crown Bank offered $6 million in construction financing.

The price of admission has yet to be established, but residents in some of downtown Newark's newer apartments pay as much as $1,650 a month for a one-bedroom residence and $2,420 a month for two bedrooms.

So whether they rent the Packards or sell them, they won't be cheap. But at least you'll get a full kitchen.

[scrollhectic]

Wednesday, February 11, 2009

Even as political officials in New York are hoping to position Atlantic Yards for federal stimulus funds, Newark Mayor Cory Booker says that the city's effort to lure the New Jersey Nets to Newark is "fixed in my mind."

That comment came as Booker was interviewed last Thursday, February 5, on Newark Today with Mayor Cory Booker, a public affairs show on WGBO, Newark's public radio station, hosted by Andrew Meyer.

Actually, as the Star-Ledger's Brian Donohue explained in the video report Ledger Live, Booker's prepared--but not delivered--text included a planned slip. As the mayor discussed bringing different types of investments to the city, he was to say, "We're excited to see what's NETS... I mean, next."

WBGO's Meyer was interviewed about Booker's speech yesterday, on All Things Considered , at about 38:15 of the second hour. Beginning at about 42:15, Meyer was asked what Booker didn't talk about.

AM: I would almost say the New Jersey Nets. Now, he did have a quick reference to the Nets. [It's not clear whether Meyer was referring to the prepared text or not.]
But the big question right now, one of the big questions in the city is: what's going to happen with the Nets. They're waiting for their arena to be built in Brooklyn. But many people are saying, "Look, you've got this brand new sports arena right in downtown Newark where the [hockey New Jersey] Devils are playing... this would be an ideal location to bring the Nets. It's ready to go; they can just walk in and it's theirs." So, there's a lot of speculation about whether or not that team is going to end up here. Mayor Booker's holding his cards very tight to the vest on this one. We pressed him time and time again, and he'll just say that his staff would be very angry with him if he was to tip any details. But he says there are discussions going on there.

On WGBO, "out on a limb"

Last Thursday, however, the mayor was not reticent. The sequence began at about 35:10 of the show; both Booker and host Meyer sounded notably enthusiastic.

CB: Our city in the next three years is going to have the most exciting things happening in our downtown. And I can't wait. And I'm going to go out on a limb right now. When we start seeing things like the Nets return to Newark--and I say return, but come--

AM: --You read my mind, Mayor... When are they coming? What do you know?

CB:I tell you this. I am putting a considerable amount of time into this, strategies, working behind the scenes. I really don't want to go too far out on a limb and my staff is going to jump all over me because--

(Last May 1 the Star-Ledger reported on efforts by the city administration and Devils owner Jeff Vanderbeek to assemble an ownership group to buy the Nets.)

Brooklyn a mirage?

AM: Well, let me put out there what we know. We have a contributor here who's been tracking the project closely, and he's said basically that the Atlantic Yards in Brooklyn has ground to a halt, Bruce Ratner, the developer, is not moving forward with the arena, supposedly until all the lawsuits over eminent domain are settled, and they're not even due to go to trial until next year. You combine that with the lack of financing available for big projects and, y'know, the Brooklyn Nets seem more and more like a mirage.

Actually, the eminent domain lawsuit will be heard in less than two weeks (and a decision in the EIS case is pending). Forest City Ratner executives assert that construction would begin in mid-2009.

Booker remained enthusiastic

CB: I'm telling you right now I have it fixed in my mind. Every single day I think about it, that we're going to have the Newark Nets one day. It's taking a lot of work on both sides of the river, and there are a lot of people from Brooklyn to Newark that believe that that team belongs here. What it's going to mean for our city is, just like the bars and restaurants that I was around [downtown], on Super Bowl Sunday. It means another 50 nights of tens of thousands of people coming to the city of Newark. It means parking tax for the city, payroll tax for the city, it means more economic development, more minority businesses are going to open up in our downtown through our loan fund. It would make a tremendous difference, and create an incredible excitement, it's something I'm working very hard on, and I'm hoping that will be successful.

The rent and the parking

Meyer also brought up the dispute about the $2 million rent the New Jersey Devils, the primary tenant of the Prudential Center, allegedly owe the city.

Booker said the issue was in arbitration and "I will not yield." However, he said that the Devils "make a tremendous amount of contributions: to the community, so, while the city should demand every dollar it deserves, it should "continue to build the strength and steam of that institution."

Meyer brought up complaints that it costs $40 for parking near the arena. "Those are midtown Manhattan prices," he said.

Booker's response: "What I'm going to simply say is take public transportation... We're perfectly located in the middle of a great transportation hub." He also pointed out that, if visitors were willing to walk, parking was less costly a little farther from the arena.

[block944]

I was walking home to 1180 when i noticed newly installed benches all around mulberry, commerce and clinton st. Looks nice

[block944]

by Gregory C. Washington/The Star-Ledger

Thursday February 12, 2009, 5:37 AM


The economy is supposed to be slumping. Depending on who you talk to, now is supposed to be a bad time to expend millions of dollars in a city that isn't a sure thing yet.

Apparently the people in the luxury residence business have not been talking to those folks. Richardson Lofts is on the way, 1180 Raymond Blvd. is quite full and soon there will be another option right on Broad Street.

Then again, when your target audience is used to paying more than $2,000 a month for a one-bedroom apartment, or $2,200 a month for a studio with a kitchenette on Wall Street, maybe it isn't hard to fill a building up. Especially when you offer more space than your Manhattan counterparts.

With this in mind, allow me to introduce you to the soon-to-be-built Packard Lofts, located at 1002-1008 Broad Street. East Kinney Street is the cross street, for those who follow the grid. For those who travel by landmarks, it's the white, three-story building down the street from Symphony Hall. It's also where Nathan's Famous hot dogs used to be.

And if you remember when the bulldogs were the mascot for Southside High School, it's the building that used to be a Buick dealership.

Now that we are all on the same page, let's plunge deeper into the city's latest high post-mixed-use residence. Currently the structure is two separate buildings, which will naturally be combined into 76,478 square feet of space.

You want more depth, don't you. Okay. We'll start on the ground floor.

The main entrance will be on Broad Street and the ground floor will house the lobby, as well as retail and commercial space. Anyone thinking about occupying the retail space will have the 7,152 square feet in the southwestern corner of the building available. That's the corner closest to the intersection of Broad Street and East Kinney Street.

An ideal occupant, at least in the eyes of the developers, is one that will cater to the residents who live above it, as well as the people who will work in the commercial space.

Now if you were thinking about claiming the 12,880 square feet of commercial space to possibly open another hot dog joint, or even sell alternative-fuel motor vehicles, forget it.

The U.S. General Services Administration, a branch of the federal government that provides, well, general service (feel free to look them up at www.gsa.gov ), is already lined up to move into the space. The men and women who support the operations of the federal district courts and the courthouse on Martin Luther King Jr. Blvd., will work there.

But the bell of this ball is the living space, housed on the second and third floors. A total of 56,446 square feet will be strategically spliced into 28 residential units, with an average of 1,150 square feet of living space per unit.

The plan is to sell them off as loft-style, live-work spaces with an open floor plan with bedroom enclosures. If executed, potential buyers will meet with the developer to discuss wall placement, colors, fixtures and whatever else isn't tied to the plumbing.

Most of the units will be one-bedroom designs. There may be four or five two-bedroom designs and even a couple with mezzanines, for those who want a private outdoor experience.

Residents who don't mind sharing the outdoors with their neighbors will have the chance on the roof of the building. Passive recreation is how some people would describe it. Food and drinks and anything else within the rules set by the developer will be allowed on the roof, assuming that
they get around to setting rules for the roof.

If the plan to sell the units holds, owners will enjoy a 30-year tax-abatement, sponsored by the city of Newark. A parking plan has not been finalized, but one of the partners in the project owns the lot next to the building and spaces may be made available to residents.

Hard hats are in the middle of selective demolition, removing everything that will not be used in Packard Lofts. The commercial space should be up and running by the summer. The rest of the building is scheduled to open at the end of the year.

All of this will cost $11.4 million. The developer ponied up $5.4 million and the believers at Crown Bank offered $6 million in construction financing.

The price of admission has yet to be established, but residents in some of downtown Newark's newer apartments pay as much as $1,650 a month for a one-bedroom residence and $2,420 a month for two bedrooms.

So whether they rent the Packards or sell them, they won't be cheap. But at least you'll get a full kitchen.

Wall streeters that can afford 2000 a month in rent are a fastly dying breed as massive layoffs are going on and still coming down the pipe combined with a tanking stock market. Also this is right across Lincoln Park, no offense but who would live so far from Penn station and downtown with no lightrail. I've seen the crackheads that wait at the busstop by 1000 broad street. Good luck and have fun.

[newarkdevil1]

Block,
I was thinking the same thing when I read the article, the thing is that Regan has made those investments and will continue to do so. They with a few other firms from the http://www.lpccd.org/ have put that investment in and I applaud them. I think its hard sometimes as a resident though to see the changes over time. I was just remarking yesterday about how much the city has changed in the 5 years I have been here. I am happy to see people still proposing projects and I hope that they continue to believe tommorows Newark can always be better than todays.

On a separate note, NDD has bonded and is moving forward with all their street scaping plans over this year. I was at their offices yesterday and they are very committed to their time schedule which you can see in their offices on Clinton st. Also, they are working very hard at trying to get the street vendors on the same page which apparently has been an issue for over fifty years or so.

[scrollhectic]

Wall streeters that can afford 2000 a month in rent are a fastly dying breed as massive layoffs are going on and still coming down the pipe combined with a tanking stock market. Also this is right across Lincoln Park, no offense but who would live so far from Penn station and downtown with no lightrail. I've seen the crackheads that wait at the busstop by 1000 broad street. Good luck and have fun.

I agree. I think Lincoln Park is a tough sell for renters. In my opinion, the rent should not be as competitive as the Penn Station or Broad Street Station area. I think the Lincoln Park area is better suited for condos then rentals. I wonder what the status of MoAAM is? That would be a big boost to that area and to Newark as a whole. I'm sure that project is 5+ years away, if it happens at all. And I'm confused. If Seton Hall is building a new dorm on Mulberry, what is going on with the Fireman's Insurance Building on Broad and Market? believe somone posted that they thought that building was slated for Seton Hall dormitories. There is still scaffolding on the building but I haven't seen any work being done to it or anyone working on the interior of the building. Does anyone know of what's propsed for that building?

[JCMAN320]

^^^I went to the Devils-Capitals game last week and noticed the scaffolding and wondered the same thing.

[block944]

^^^I went to the Devils-Capitals game last week and noticed the scaffolding and wondered the same thing.

I saw some crane work being done today as well as construction on broad and raymond by the bus stop.


Overall I agree, its good to see the momentum going no matter what the projects are. The big clincher will be: http://gateway.njit.edu/gateway/docs...ptual-plan.pdf

Having been in njit in 1996 and now doing my masters in 2009, the difference is amazing in such a short time. If the gateway project is done, the path will be paved for groceries, movie theatres to open in newark and to have actual students be walking around. Once the demand is high enough, the haynes building will be the next logical step in rebuilding and hopefully by then the shaq building will be up and running as well as all the work across the river at harrison. THEN the city will really be something


http://gateway.njit.edu/details/index.php
From the site the reference to "Sansom row" is cool side street in philadelphia off 34 th street between upenn and drexel. Its a cool hangout place and if they have something like that in newark it will look real nice.. Almost like what halsey street is starting to become.

[Marv95]

I was there for day trips in the past 2 years in Philly(shut up), and it really is something: bookstore, clothing outlet, etc. In fact the area around the UPenn campus looked well organized, clean, and even busy, although not too crowded. Also 1-2 subway-surface stops within that radius. I thought to myself 'Wouldn't it be something if Halsey Street or even the PruCenter area had something as cool as this?'