Matrix Net-Leases 411,617-SF Newark Legal Center

Now, the company has taken arguably its biggest step in that direction with its selection by the Port Authority of New York and New Jersey to net lease the Newark Legal Center for an initial term of 50 years. The transaction is valued at $204 million for that initial term, and carries options that could keep the property in Matrix's hands for an additional 49 years beyond that.

"Our proposal was accepted by the Port Authority, and we're looking forward to working with the City of Newark," according to Joseph S. Taylor, president and CEO of Matrix. "In recent years, we have deliberately sought opportunities in key cities around the state, and Newark was at the top of our list."

The Newark Legal Center, also known as One Riverfront Plaza, is considered to be one of the top addresses in the city's Gateway District, itself widely considered the best address in New Jersey's largest city. The 20-story, 411,617-sf class A building was completed in 1989, and as suggested by its official name is home to many of the region's top law firms.

"We continue to see the urban settings as an important part of our portfolio," according to Taylor. "Our experience in evaluating properties and creating new value in existing properties is part of our pursuit of opportunities in both the office and industrial sectors. We believe that our investment in the downtown area of Newark will be beneficial both to us and to the city."

To date, Matrix has developed real estate valued at more than $1 billion. At the same time, the transaction reflects the Port Authority's ongoing move to get out of the real estate business, at least for properties that don't directly relate to transportation and commerce.