Federal Realty Investment Trust JV Acquires Hoboken Portfolio for $200M
The 278,879-square-foot portfolio represents one the largest single sales of mixed-use properties along on the New Jersey waterfront, according to Newmark Knight Frank.’
HOBOKEN, NJ—A joint venture that includes Rockville, MD-based Federal Realty Investment Trust has acquired a 39-property mixed-use portfolio here for a reported purchase price of $200 million.
Brokerage firm Newmark Knight Frank reported the sale of the portfolio for an undisclosed price. Published reports indicate the portfolio traded for in excess of $200 million.
Federal Realty Investment completed 95% of the Hoboken portfolio purchase in the third and fourth quarter of 2019, according to a company spokesperson.
Newmark Knight Frank executive managing director Kevin Welsh and managing director Brian Schulz of NKF’s Capital Markets group represented the seller in the transaction, along with support from NKF retail managing director Dean Tselepis. The team was also responsible for procuring the joint venture partner, Federal Realty Investment Trust. The other partner in the deal was not identified.
The 278,879-square-foot portfolio represents one the largest single sales of mixed-use properties along on the New Jersey waterfront, according to Newmark Knight Frank.’
“We’re very bullish on Hoboken as it continues to mature and find favor among NYC commuters, especially given its proximity to the increasingly important West Side of Manhattan and the $25+ billion Hudson Yards development,” said Donald Wood, president and CEO of Federal Realty Investment Trust in referencing the deal in the company’s fourth quarter 2019 earnings call. “This exciting joint venture creates a highly productive business development arm for us in Hudson County. We expect this portfolio to be just the beginning of a very successful long-term relationship.”
Concentrated primarily along Washington Street, Hoboken’s premier retail corridor, the portfolio comprises 129 residential units and 171,959 square feet of urban retail featuring a number of Hoboken’s leading brands including: Sephora, Chipotle, Quality Greens, Honeygrow and CVS.
“The seller was able to create significant value by building this remarkable portfolio over more than 30 years, providing Federal Realty with the opportunity to acquire unprecedented scale in one of the country’s premier lifestyle environments,” said Welsh. “The partnership’s unique combination of local expertise and national retailer relationships will have a transformative impact on Hoboken for years to come.”