Joint venture acquires 1.6 million square feet of Newark’s Gateway Center

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The joint venture between Garrison Investment Group, Axonic Capital LLC, Taconic Capital Advisors and Onyx Equities LLC announced on Thursday its acquisition of One, Two and Four Gateway Center in Newark. This 1.6 million-square-foot transaction represents New Jersey’s largest office deal of 2018.

Prudential Financial said it will participate as a co-investment partner.

According to a release provided by commercial real estate firm JLL, the partnership has aggregated the first majority interest in Gateway Center’s recent history. New ownership intends to execute a multi-million dollar modernization plan, predicated on creating a more vibrant retail Concourse.

With over 60,000 people traversing the 1,400-linear-foot Concourse each week, including PATH, New Jersey Transit and Amtrak commuters; Gateway employees; neighboring employees; visiting clientele; Prudential Center spectators; as well as students from New Jersey Institute of Technology Rutgers University Newark and Seton Hall, the new ownership believes the improvement plan will reinvent the Concourse as a destination, and spur significant demand from retailers and corporate office users who prioritize access to transit and a talented, diverse workforce.

“We are honored and thrilled to be part of Newark’s renaissance in such a significant way.  Gateway Center is now positioned to become Newark’s greatest amenity, and arguably New Jersey’s most important center of commerce, talent and connectivity,” stated John Saraceno, managing principal and co-founder of Onyx Equities.

Increased residential investment in Newark and Harrison coupled with an uptick in corporate relocations to Newark sparked the joint venture’s interest in the Gateway Center opportunity.

Onyx Equities will serve as the operating arm, overseeing asset and property management, tenant relations, leasing and construction. Adam Karafiol and Matthew Flath of Onyx will lead office and retail leasing efforts. The JLL team of Tim Greiner, Blake Goodman and Colleen Maguire has been assigned as agent for Gateway One and Two. The RKF team of Glenn Beyer, Jerry Rockoff and Rob Mackowski has been assigned as retail agent.

Gensler was selected as project architect, led by Dana Nalbantian. Rebranding and marketing assistance will be provided by Real Estate Arts, led by Michael Goodgold.

“We are excited to be part of this incredible team whose focus is to create a unique and inviting experience for Tenants and visitors at the Gateway Center and bring the Gateway Center back to prominence in Newark,”  added Blake Goodman, executive vice president at JLL.

JLL’s capital markets group led by Managing Directors Thomas Walsh and Joseph Garibaldi served as investment sale broker in the transaction.

“Well-capitalized and united ownership will provide the key ingredients in the Gateway Complex reclaiming its reputation as one of the best transit-oriented office portfolios in the Northeast,” Walsh said in a prepared statement.