USAA, SJP Break Ground on 500 KSF NJ Waterfront Office Tower

It was no lazy Monday for SJP Properties and USAA Real Estate Co. yesterday. Along the Hudson River in Hoboken, N.J., the partners broke ground on Waterfront Corporate Center III, a 14-story mixed-use office tower that will yield 500,000 square feet of state-of-the-art space, 200,000 square feet of which have already been claimed.

It was no lazy Monday for SJP Properties and USAA Real Estate Co. yesterday. Along the Hudson River in Hoboken, N.J., the partners broke ground on Waterfront Corporate Center III, a 14-story mixed-use office tower that will yield 500,000 square feet of state-of-the-art space, 200,000 square feet of which have already been claimed.

The partners’ lease agreement in February with Pearson, an educational media and news publications provider that currently maintains its home in Upper Saddle River and Old Tappan, N.J., kicked off development of the one remaining site within the 26-acre master-planned Waterfront Corporate Center. Now all its systems go on the ground and a 14-story building with 25,000 square feet of retail space will soon sprout up on the coveted location. Pearson will relocate 900 employees to its new digs which, as New Jersey Lt. Governor Kim Guadagno said in a prepared statement, “will add to both the economic engine and the vitality of our community.”

From the local to the top levels of government in the Garden State, the Waterfront III project is a welcomed endeavor. New Jersey will provide $82 million in Urban Hub Tax Credits over a 10-year period for the project, which sits within a stone’s throw of train and bus transit options at the Hoboken Terminal, as well as water ferries, all providing easy access to New York City.

The demand for office space in Hoboken exists and is on the rise. Class A office buildings comprise only 26 percent of the state’s office inventory, 60 percent of which is presently at Waterfront Corporate, according to a report by commercial real estate services firm Jones Lang LaSalle, which represented Pearson in the lease agreement. “Historically, Hoboken has been one of the tightest areas in the state,” per the report. “The recent build-to-suit lease by Pearson Education at 221 River Street for over 206,000 square feet should further propel the city’s economy once completed in 2014.”

And, as noted in the report, with nearly 75 percent of its residents being 25 years and older having obtained a bachelor’s degree at minimum, Hoboken has the educated workforce that could attract and retain companies to the remaining 275,000 square feet that is available for lease at Waterfront III.

Waterfront III is on target to reach completion in 2014.