Heritage Sells 570 Broad St.

"This disposition follows the repositioning of the property and enables us to pursue other opportunities in Newark," Steven Greenberg, a principal of the Ridgefield Park, NJ-based Heritage Management tells GlobeSt.com. "We look forward to the next chapter in our involvement in Newark. We believe in this city."

The parties involved declined to release the sale price, but sources with knowledge of the transaction tell GlobeSt.com that the final figure is in the vicinity of $110 per sf, or about $22 million. Heritage's involvement with 570 Broad began in 2003 when it bought the long-vacant property from Investment Properties Association, a partnership of Leona Helmsley, the estate of the late Harry Helmsley and other principals of Helmsley-Spear. First Fidelity Bank had at one time occupied the entire building, but vacated the premises in 1998 after its merger with First Union (now Wachovia). The sale price for the seven-years-vacant asset in 2003 was just $7.5 million, or less than $38 a foot.

As reported by GlobeSt.com, Heritage subsequently spent $5 million to renovate 570 Broad, a project that was completed in 2005. And in late 2005, also as reported by GlobeSt.com, Heritage secured $20.5 million to refinance the debt on the building, a three-year, adjustable-rate loan provided by GMAC Commercial Mortgage Corp.

Along the way, Heritage has been able to fill about one-third of the repositioned asset. Both Washington Mutual and Atlantic Federal Credit Union pre-leased space while the renovation was still under way. Since then, the now-former owner was able to bring Urbitran Corp., an architectural/engineering firm, PC Tech, a technology training firm, Lycatel Group, a European prepaid telecom firm, and Diversity Inc., a publishing firm, into the fold.

"We are proud of what we have accomplished here," Frank James, Heritage's director of property management, tells GlobeSt.com. "The property is an ideal first step into Newark for Ivy Equities and Urdang, and these institutional players are a great addition for Newark. It is gratifying to see new players like these coming into the city."

The sale of 570 Broad is Heritage's second deal with Ivy Equities: Two years ago, it bought 300 Harmon Meadow Blvd. from Ivy, an asset that remains in the firm's portfolio. And while Heritage looks for other opportunities in Newark, it remains involved in the city via its stake in the adjacent 550 Broad St. Heritage bought the 291,000-sf asset five years ago for $23.5 million, sold an 80% share of it in 2005 to the Dr. Peters Group, a German investment group, but with its remaining 20% share remains as the asset's executive operating partner and on-site manager.