Standard Chartered Completes Gateway Move-In

NEWARK-The London-based Standard Chartered Bank has completed its move-in at Two Gateway Center, bringing more than 300 administrative and back-office personnel across the Hudson River from the company’s Manhattan headquarters at One Madison Ave. The move completes a transition that began in early April when Standard Chartered signed a 10-year lease for 45,000 sf at the 18-story, 780,000-sf tower.

Other than the term length, further details of the lease were not disclosed. Availabilities at the building, now totaling just 12,000 sf, are currently listed with an asking price of $35 per sf. As reported by GlobeSt.com, the move across the river was related to Standard Charter’s $823-million acquisition of American Express Bank Ltd. from the American Express Co.

“With more and more businesses coming into our city, Newark is on the rise,” says Mayor Cory Booker, in a statement. “Standard Chartered Bank’s move to Newark is a validation of the efforts being made by [this administration] to create a vibrant downtown….”

“Standard Chartered in the US has a strong and growing business with great ambition,” says David Stileman, the company’s chairman and chief executive. “We very much look forward to becoming a part of the community here. We expect to make a significant investment in developing our Newark facility in the coming future.”

“We believe this deal, because of its size and its status as an out-of-state tenant, is a milestone for the city,” says Ben Korman, principal at C&K Properties. An affiliate of his company acquired Two Gateway Center two years ago from American Landmark Properties for a number said to be in the $160-million range.

“It’s the beginning of an upward trend for the city and for the Newark office market,” Korman says. “It’s a great win.” The bank is also eligible for state urban enterprise zone benefits, including a sales tax exemption, and picked up a Business Employment Incentive Program approval relating to tax rebates from the New Jersey EDA earlier this year. SCB opted for the local location over competing bids from Jersey City, Princeton, Manhattan, and White Plains and Utica, NY.

Other major tenants at Two Gateway Center, which is part of the multi-tower Gateway Center adjacent to Newark Penn Station, include Prudential, the Port Authority of NY/NJ, the State of New Jersey, Wachovia and the US government.