X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

JERSEY CITY-The Lefrak Organization has built four high-rise office towers in the last three years at its Newport planned community on this city’s waterfront. Despite the activity by Lefrak and other developers who have added several million sf of class A office space, the country’s hottest office market has a vacancy rate of only 0.41%. Other developers active in the market include Hartz Mountain Industries and Gale & Wentworth, as well as SJP Properties a little to the south in Hoboken.

The state of the market is now prompting Lefrak to build Newport Office Center VII, a 1.1 million-sf, 32-story tower slated to be under construction next month. The projected timeline has completion scheduled for June 2002. It will also finish up Lefrak’s first phase of office construction at Newport with a total of five million sf of space. Altogether, the $10 billion Newport project covers 600 acres with office, retail and residential uses.

NOC VII is being built on spec, just like the other four buildings Lefrak developed here in the last three years. But it likely won’t remain that way for long. One signal: Lefrak has leased more than three million sf at Newport in just the last 24 months. The market has given no indication of slackening demand.

“Building on spec takes confidence,” admits Lefrak Organization president Richard LeFrak, son of legendary developer Sam LeFrak. The elder LeFrak is credited with starting the whole development phenomenon on Jersey City’s waterfront.

LeFrak says the confidence to do a big spec project comes from the fact that “Newport has been an extraordinary success so far. Newport’s six office buildings are completely leased, and we believe that NOC VII will also be fully leased before completion.”

Designed by the architectural firm of Kohn Pedersen Fox Associates, NOC VII will carry out a nautical theme with a glass wall on the southeast corner projecting like a spinnaker from a sailboat. It will have views of New York Harbor and lower Manhattan. The interior will feature 46,000-sf column-free floors, redundant fiber optics and indoor parking. It will also feature 12,000 sf of retail on the ground floor.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.