A group of five investors including financial services giant Prudential Financial Inc. paid about $300 million for the Gateway Center office complex in downtown Newark, N.J., Bloomberg News reported, citing a person with knowledge of the matter.
The 5-acre complex, which was built more than 40 years ago, comprises 1.1 million square feet of office space. The buyers plan to invest approximately $35 million to renovate the property's concourse, revamp lighting and repair escalators. New street access, public outdoor spaces, and retail and dining spaces will also be added.
Aside from Newark-headquartered Prudential Financial, the investor group includes New York-based asset managers Garrison Investment Group, Axonic Capital and Taconic Capital Advisors and New Jersey-based Onyx Equities. Prudential Financial has invested over $1 billion in the city in the past five years, according to the report.
The investor group acquired the complex's office towers known as Gateway One, Two and Four, which are about 70% occupied, the news outlet noted. The property also includes a Hilton hotel and houses office tenants such as Broadridge Financial Solutions and law firm McCarter & English, according to the report.