The joint venture between Garrison Investment Group, Axonic Capital LLC, Taconic Capital Advisors and Onyx Equities, LLC is proud to announce its acquisition of One, Two and Four Gateway Center in Newark, N.J. Prudential Financial, who has held its global headquarters in Newark since its founding more than 140 years ago, will participate as a co-investment partner. This 1.6 million square foot transaction represents New Jersey’s largest office deal of 2018.
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. Approximately 60,000 people traverse the 1,400 linear foot Concourse each week, including PATH, NJ 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.
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.
“We echo Onyx’s excitement regarding the Gateway Center acquisition” added Eric Rosenthal, Managing Director of Garrison Investment Group. “We look forward to contributing to Newark’s positive momentum while repositioning the iconic campus.”
Onyx Equities will serve as the operating arm, overseeing asset and property management, tenant relations, leasing and construction. Adam Karafiol and Matthew P. 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.” states Walsh.
About Onyx Equities, LLC
Headquartered in Woodbridge, New Jersey, Onyx Equities, LLC is a leading, full-service real estate firm specializing in investment, asset repositioning and ground-up development. Since its founding in 2004, Onyx has acquired more than $2.4 billion worth of real estate assets throughout New Jersey, New York, Pennsylvania and Connecticut. Onyx has executed over $230 million in capital improvement projects under its signature repositioning program. Driving Onyx’s success is its loyalty to core geographic markets, a seasoned team of expertise in all facets of real estate, its adaptability to market conditions, and the experience gained from managing over 66 million square feet since inception. Throughout its portfolio, Onyx takes aim at increasing operational efficiency, tenant satisfaction and long-term value. For more information contact the firm at 732-362-8800, or visit http://www.onyxequities.com/.
About Garrison Investment Group
Since its founding in 2007, New York-based Garrison Investment Group has acquired more $3.3 billion of real estate across property types. Garrison is a multi-strategy investment manager that deploys capital in opportunities across Real Estate (equity and debt), Corporate Finance (lending and distressed), and Financial Assets (commercial, industrial and consumer loans as well as hard asset lending and structured finance). Its team of experienced professionals enables the firm to source and execute defensible transactions across its multiple investing disciplines.
About Taconic Capital Advisors L.P.
Taconic Capital Advisors L.P. is a global institutional investment firm founded in 1999 by former Goldman Sachs partners Frank Brosens and Ken Brody. Taconic pursues an event-driven, multi-strategy investment approach dedicated to generating strong risk-adjusted returns with an emphasis on capital preservation. The firm has offices in New York, London and Hong Kong with over 39 investment professionals, including 9 investing principals who average 14 years of investment experience at Taconic and 79 business function professionals across legal/compliance, finance, operations, technology and investor relations. Taconic’s commercial real estate business is managed by James Jordan and Jon Jachman and focuses on sourcing value-add opportunities through non-traditional, off-market processes. Leveraging its diverse network of relationships with CMBS special servicers, lenders and local operating partners, Taconic seeks to generate attractive risk-adjusted returns through the strategic repositioning and re-introduction of well-located real estate assets.
About Axonic Capital
Axonic Capital is a New York based investment advisor founded by Clayton DeGiacinto in 2010. Axonic’s primary business manages client capital in commercial real estate (CRE), structured credit and systematic fixed income. Axonic and its affiliates currently manage approximately $3 Billion in assets and employ more than 47 professionals. Axonic’s CRE business is managed by Matthew Weinstein, Partner and Co-Head of Credit, and invests client capital across a broad range of the CRE capital structure. Axonic invests in opportunistic commercial real estate equity transactions and employs an event-driven investment approach that seeks to unlock value by repositioning well-located assets that have been under-managed or are otherwise under-performing. Additionally, Axonic’s CRE debt platform focuses primarily on commercial real estate mezzanine loans and Agency CMBS b-pieces.
About Prudential
Prudential Financial, Inc., a global financial services leader, helps customers grow and protect their wealth through life insurance, annuities, retirement-related services, mutual funds and investment management. Founded on the belief that financial security should be within everyone’s reach, Prudential has been a pioneer in impact investing and is building a $1 billion portfolio of investments that combines both social and financial return.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with operations in over 80 countries and a global workforce of 88,000 as of September 30, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
