WALL STREET WEST: Office Developments

Despite reports about the softening office expansion in New Jersey and the New York metro, new companies will continue to expand or relocate operations to Jersey City. The tragedy of September 11, Jersey City’s incentive packages and the city’s proximity to Manhattan are expected to fuel further interest in Newport and Exchange Place.

Newport

Chase Manhattan, a subsidiary of JP Morgan Chase, will begin to relocate 2,000 employees to Newport V and VI from downtown Manhattan this coming summer.

Newport Office Centers V & VI-totaling 1.2 million square feet-are 22 and 12 stories respectively. Designed by the architectural firm of Poskanzer & Skott, both the granite and glass wall curtain facade towers are equipped with state-of-the-art technology including advanced fiber optic telecommunications system and a conference center with audio- video conferencing capabilities. In addition, amenities include back-up childcare center, high-speed elevators and abundant parking spaces.

Last February of 2001, UBS | PaineWebber leased the 32-story, 1.2 million-square-foot office building from the LeFrak Organization. The $174 million Newport Office Center VII, which is located along Washington Boulevard and Sixth Street, is currently under construction and expected to be finished this fall.

NOC VII is expected to accommodate 4,000 employees, a major addition to UBS | PaineWebber’s growing presence in Jersey City. UBS | PaineWebber already occupies the largest block of office space in the 14-story, 567,000-square-foot Newport Office Center III, better known as The PaineWebber building.

Exchange Place

Mack-Cali Realty, a real estate investment trust, is currently building more than 1.5 million square feet of office space.

Harborside V, a 980,000-square-foot office building, will rise more than 30 stories. The modern sheath-glass tower is expected to be ready this fall. Among the major tenants are Forest Laboratories, On-Line Investment Services, National Financial Services/ Fidelity Corporate Real Estate LLC, SunAmerica, CIBC Oppenheimer and Garban Intercapital.

Harborside X, which is located north of Harborside Financial Center, will rise along the banks of the Hudson River. The 19-story, 575,000-square-foot building project is a partnership between Mack-Cali and Columbia Development. The building is built for Charles Schwab, a securities brokerage firm. When finished by this summer, the office tower is expected to accommodate about 2,000 employees. Instinet, an electronic trading network owned by Reuters, recently signed a lease.

Lured by unbeatable local and state-sponsored incentives and Jersey City’s proximity to Manhattan, Goldman Sachs paid over a $100 million bargain for the last three existing parcels in the former Colgate district.

In October 2000, Goldman Sachs started construction on the 821-foot-skyscraper, which will soon be the tallest edifice in New Jersey and along the Hudson River. Recent company estimates reported that the 1.36 million square feet office project currently costs $361 million.

The tower will be finished in 2003, and will be home to 6,000 Goldman Sachs employees.

Key Notes

In response to the need for more office space after September 11, the LeFrak Organization, the Queens based Newport development pioneer, is awaiting amendments to the Newport Redevelopment Plan from the City Council. The amendments include an additional 2 million square feet of office space on the northern quadrant of Newport by Washington Boulevard. Despite protests by apartment residents for more green space, the amendments will likely pass, according to a city official.

GOLDEN NEIGHBORHOODS:
Residential Development

More and more Americans and soon-to-be Americans are discovering Jersey City’s superb location in the New York metro. With 240,055 current population, a five-percent increase from the 1990 Census, the demand for new residential developments remains stronger than ever.

Exchange Place

North Pier Apartments

Lincoln Property Company of Dallas and Equity Residential Properties Trust of Chicago are constructing the North Pier Apartments on the riverfront.

Designed by RTKL of Washington, the 300-unit, 8-story apartment, located north of Harborside Financial Center, is currently under construction. The units will range from 700 to 1,500 square feet. The top floor will house a gym and a party room.

The building will be angled and dressed in tarnish-gray brick, with white and silver panels and plenty of glass to accommodate views of the Manhattan skyline. A 16,000 square-foot- park will be linked to the building by a public walkway.

Harborside Residential

The Applied Companies of Hoboken --along with Liberty Center Associates -- is expected to build a $140 million apartment complex within the next four years.

Harborspire, two-Art-Deco residential twin towers, will soon be the tallest apartment complex in Jersey City. The project, which will be located by Harborside V, will be 55 and 50-stories, and will have 445 and 417-units respectively.

Apartments will range from 600-square-foot studios to 1,650-square-foot three-bedroom units. Rental rates will range from $1,600 to $3,800. Among the amenities are marble tile bathrooms, an outdoor swimming pool, a basketball court, a health club and children’s play area.

Paulus Hook

The Sugar House

Since this summer, affluent newcomers have been moving to the luxury digs in the Sugar House, a 4-story, Civil War era building located on the south end of Washington Street and north of Liberty State Park.

The units are 1,000 square feet for one bedroom and studios, and up to 2,500 square feet for some of the two and three bedrooms. Amenities include built-in humidifiers, video intercoms, Jacuzzi tubs, a health club, ample parking, and views of the Manhattan and Liberty State Park.

Prices range from $500,000 to $1.5 million, one of the most expensive in Hudson County.

Liberty View Towers

Essex Waterfront Properties is building the Liberty View towers along Essex Street and behind the soon-to-be Goldman Sachs offices.

The twin, 27-story circular towers will rise 350 feet and will house 634 units. Among the amenities are a 28,000 -square -foot retail space, a 798-space parking garage, a 7,000 square-foot gym and an outdoor pool.

The luxury apartment complex will be finished next summer. An additional 8-story, 120-unit residential building will soon be constructed across Essex Street.

Newport

Abraham Lincoln

The LeFrak Organization is applying the finishing touches on Abraham Lincoln, a moderately priced luxury residential tower located in the Hamilton Park neighborhood. The Lincoln is adjacent to Newport Mall, the International Food Market, and a host of LeFrak’s office towers.

Rental rates range from $1,225 to $2,380 for studios and three bedroom units respectively.

Marbella

Garden State Development and Roseland Properties will soon build the Marbella along Washington Boulevard.

The 40-story, luxury apartment complex will have 416-units. Studios will be between 800 to 900 square feet; while two-bedroom-units will be about 1,200 square feet. Prices are expected to be from $1,200 to $2,000.

Grove Street

Metropolis Towers

Metrovest, a Queens-based residential developer and property manager, will soon build Metropolis Towers. The two, 25-story towers totaling 575,000 square feet will be located near the Grove Street PATH Station along Marin Boulevard and Christopher Columbus Drive.

DMR Architects designed the project. Amenities will include a rooftop pool, a four level parking garage, and recreational facilities.

Liberty Harbor North

After more than a decade, the Liberty Harbor North Redevelopment is definitely underway.

Peter Mocco, former North Bergen Mayor, and Jeff Zak are the principal developers of the $2 billion redevelopment project. Andres Duany, designer of the Seaside development in Florida and known for the famed “New Urbanism” urban planning concept, is the chief architect of Liberty Harbor North.

The 86-acre mixed-use development will have more than 6,000 units in housing; 775,000 square feet for retail; 175,000 square feet for school facilities; 1.1 million square feet for a hotel; and 4.6 million square feet for offices.

Spotlight: Other Developments

Restaurants

Since last year, rapid office and residential developments are fueling a surge in delectable ethnic restaurant openings downtown. Among new restaurant businesses are Oddfellows, a New Orleans bar; Don Julio, Mexican gastronomy; and Komegashi Too, Japanese cuisine. Familiar American cuisine is served by Liberty Grill and Liberty House, which are located in Newport and Liberty Park respectively. Liberty House is expected to open full services this summer.

New PATH Service for Lower Manhattan

Before the advent of March, a new $544-million PATH Service for Lower Manhattan, which is the first step in a long-term program, will be under construction at the WTC site. The contract for the temporary station, which will restore the much-needed service from downtown Manhattan to Exchange Place, was awarded to Yonkers Contracting Company and AJ Pegno Construction. A $300-million dollar contract is in place to accelerate the project, and is expected to be fully operational after 18 months from the construction date. The project will include new rail line crossovers; expansion of the Exchange Place PATH Station; and tunnel repairs to two tunnels under the Hudson River. The Port Authority of New York and New Jersey, New York Governor George E. Pataki, and former New Jersey Governor Donald T. DiFrancesco proposed the plan.

Power House

Last December, after a two-year preservation campaign, the National Register for Historic Places included the Power House in its list of national landmarks, a major victory for the Jersey City Landmark Conservancy, avid proponents for preserving the city’s historic sites. The “Industrial Romanesque” brick structure, which is located in First Street nearby major development site from Mack-Cali Realty and Avalon Bay Communities, is owned by the City of Jersey City and the Port Authority of New York and New Jersey.

Future proposals for the landmark structure include an office building to be built on top of the existing edifice, which is being studied by the Port Authority. An art or history museum and even a performing arts center is being proposed the Jersey City Landmark Conservancy Group. The Cordish Brothers, developers of Baltimore’s Power House, also expressed interest in the site.

The Power House once powered the commuting trains on both sides of the Hudson River from 1908 to 1929, and was later utilized as storage for railroad equipment. It was taken over by the Port Authority of Trans-Hudson in 1962 and was later abandoned.