Newark Office Tower Commands $165M

The sale of Two Riverfront Plaza, home to Panasonic Corp., reflects the transformation of the Newark office market.

Newark, N.J.—An international entity advised by Arch Street Capital Advisors LLC has acquired Two Riverfront Plaza, a 337,500-square-foot, 12-story office tower in Newark, N.J., from SJP Properties and Matrix Development for a reported $165 million.

Two Riverfront Plaza, Newark, N.J.

Two Riverfront Plaza, Newark, N.J.

The tower serves as the U.S. headquarters for the Panasonic Corp. of North America, which occupies 10 of the tower’s 12 stories. Floors three and four are currently available in their entirety, consisting of approximately 29,000 square feet each.

“When we built this trophy office building three years ago, we recognized that the Newark market was on the brink of an unprecedented transformation, and that our building would be at its forefront,” Steven Pozycki, SJP Properties’ CEO, said in a prepared release. “This sale reflects the unparalleled quality of this building—which resulted in tremendous interest among institutional-grade investors from all around the world—as well as Newark’s growing reputation as an established hub for global business.”

Two Riverfront Plaza features technologically advanced infrastructure and leading environmental sustainability, having achieved LEED Platinum certification for its interior and LEED Gold certification for its core and shell.

The site features a two-story lobby, 462-space parking garage, full-service bank, post office, sundry shop, café restaurant, 24/7 manned security and a direct-connection pedestrian skyway to Newark Penn Station and the nearby Gateway complex, as well as an additional five acres of land available for future development.

The CBRE team of Jeffrey Dunne, Darcy Stacom, Kevin Welsh, Brian Scott and Brian Schulz of CBRE Institutional Properties, in collaboration with Dudley Ryan of CBRE’s East Brunswick office, represented the sellers in the transaction.

“Since we acquired One Riverfront plaza, formerly ‘The Legal Center,’ in 2001 and subsequently acquired the land now home to Two Riverfront Plaza, Matrix has been a believer and investor in Newark’s ability to serve as a premier destination for global businesses like Panasonic,” Joseph Taylor, Matrix Development Group’s CEO, said in the release. “We’ve been extraordinarily pleased to partner with SJP Properties to develop this best-in-class headquarters facility, and are now excited that CBRE has identified a top investor that recognizes this asset’s superior market position.”

The property is situated approximately eight miles west of Manhattan and offers immediate access for employees and visitors by NJ TRANSIT railways and bus lines, Amtrak, PATH and the Hudson-Bergen Light Rail.

“The sale of Two Riverfront Plaza demonstrates the continued demand for premier office assets in urban lifestyle environments with mass transit connectivity, such as Newark,” Dunne said. “As the headquarters for Panasonic Corporation of North America, one of Newark’s most prominent corporate anchor tenants, this world-class building is well positioned to provide the owner with long-term value.”

Image courtesy of Yardi Matrix