Buyers Found for Two More Gateway Towers

Now, the Olnick family of New York has agreed to pay an estimated $58 million for the 320,000-sf Four Gateway Center, and Bedminster, NJ-based Advance Realty will buy the 467,000-sf One Gateway Center for a number said by industry sources to be around $90 million. The various parties have declined to comment on the sales.

Two Gateway Center, the largest of the four towers, has not been part of any of these transactions. It is currently owned by American Landmark Properties, based in the Chicago area, which acquired it last year for $105 million from the Witkoff Group of New York.

If the numbers hold up on the latest sales, the Gale/TishmanSpeyer partnership will have netted more than $200 million for the three buildings, or a return on investment in the 25% range in just three years. Gale is still very much involved in the Newark market and is in the process of buying 570 Broad Street from Helmsley-Spear. The deal for the 200,000-sf building is said to be contingent upon Gale's ability to secure an anchor tenant.

Gateway Center in downtown Newark is one of the city's best-known properties. The four office towers, which total more than two million sf, interconnect by skywalk with Newark Penn Station, a prime commuter and Amtrak rail stop. They're also linked with the 250-key Hilton Hotel that was built as part of Gateway Center, which was originally developed by Food Fair Properties, then taken over and built out by Prudential. The Gateway complex also includes almost 100,000 sf of retail space, and via the Hilton Hotel is also connected to the Newark Legal Center at One Riverfront Plaza.