As New York City's office market continues to soar, neighboring New Jersey benefits as well.
In Englewood Cliffs, N.J., New York-based Commercial Developments/East Inc. (CDI/East), has been selected to develop CNBC's new headquarters. The 500,000 sq. ft. project will be built on a 22-acre site on Sylvan Avenue near the George Washington Bridge.
Earlier this year, CDI/East purchased a 15-acre site in Englewood Cliffs from Lever Brothers. An additional, adjacent site owned by CDI/East's parent company, Kajima Real EstateCorp., provided CDI/East with enough entitled land to develop the CNBC headquarters. The adjacent site also is home to Kajima Development's U.S. headquarters.
The first phase of CNBC's headquarters will consist of a three-story, 300,000 sq. ft. building that will contain a 25,000 sq. ft. studio in a column-free, 35-foot clear space; 40,000 sq. ft. of technical support space; and ancillary facilities. The completion of phase one is planned for August 2002. The second phase will consist of 200,000 sq. ft. of office space developed during the next three to five years.
In Newark, N.J., New York-based Sonnenblick-Goldman Co. acted as adviser to a venture between Florham, N.J.-based Gale & Wentworth and Morgan Stanley Real Estate Fund III in the disposition of Three Gateway Center for $57 million. New York-based Tahl-Propp Equities acquired the 478,500 sq. ft. Class-A building. The Gale & Wentworth/Morgan Stanley partnership retained ownership of One and Four Gateway Center.
Built in 1984, Three Gateway is a 19-story tower with a six-story, glass-enclosed atrium. Prudential Life Insurance Co. has a 15-year, triple-net lease for the building. The $57 million sale results in a cap rate of 8.8%.